California Housing Starts Rebound in August, CBIA Announces
SACRAMENTO, CA – September 23, 2011 – (RealEstateRama) — Driven by a substantial increase in the multifamily sector, California housing starts surged in August posting a 30 percent increase over the same month a year ago, the California Building Industry Association announced today.
According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 4,695 total housing units in August, up 30 percent from the same month a year ago and up 96 percent from July. Permits for single-family homes totaled 1,828, down 4 percent from August 2010 but up 20 percent from the previous month, while multifamily permits totaled 2,867, up 68 percent from a year ago and up an astonishing 230 percent from July.
For the first eight months of the year, permits were pulled for 30,128 total units, up 3 percent when compared to the first eight months of 2010 when 29,374 permits were issued. Permits for single-family homes were down 16 percent while permits for multifamily units were up 30 percent.
Mike Winn, CBIA’s President and CEO, said it was great to see some positive news with regard to the state’s housing industry but tempered that enthusiasm with the reality of California’s economic conditions.
“It’s great to see the increase in the overall numbers and we hope to see continued increases throughout the remainder of the year with the hope of improving upon last year’s homebuilding pace,” said Winn. “The fact remains that economic conditions in the state — tight credit for buyers and builders, the glut of foreclosed and distressed properties on the market and high unemployment — are keeping California’s struggling housing industry from experiencing the type of robust recovery we’ve seen in the past.”
Winn called on Governor Jerry Brown to refrain from doing any harm to the state’s housing industry as he wades through the pending legislation on his desk.
“We encourage Governor Brown to closely examine any legislation that might harm our industry’s fragile recovery,” said Winn. “Getting job-generating home construction back to healthy levels would go a long way toward reinvigorating California’s economy.”
CIRB’s 2011 forecast remained at 46,700 total units, which would put this year’s total just a fraction ahead of 2010’s 44,762 units, but still down from 2008’s total of 64,962 units.
###
The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association’s Web site, www.cbia.org.
The Construction Industry Research Board (CIRB) is a nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Web site, www.cirbdata.com.
To subscribe to CBIA press releases and receive them as they are distributed, please visit the newsroom section of our Web site and click on the RSS subscription button.
Media Contact:
Michael Castillo
Communications Manager
(916) 443-7933 ext. 346
mcastillo (at) cbia (dot) org
