Housing Production Posts Decrease in November, CBIA Announces

SACRAMENTO, CA – December 24, 2009 – (RealEstateRama) — Housing construction in California continued to decrease in November and is on track to set a record for the least amount of homes produced in a single year, the California Building Industry Association announced today.

“We’re on track to set another record for production this year, but it’s not a record anyone is happy about,” said Liz Snow, CBIA’s President and CEO. “The housing sector is a very important component in California’s overall economy and the fact that this is the second year in a row with record-low production numbers does not bode well for job creation and a broader economic recovery in the near future.”

According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,540 total housing units in November, down 12 percent from October, and down 46 percent from November 2008. Permits for single-family homes totaled 1,710, down 20 percent from the previous month, but up 18 percent from the same period last year, while multifamily permits totaled 830, up 9 percent from October but down 74 percent from a year ago.

During the first 11 months of the year, permits were pulled for 32,558 units, down 46 percent from the same period last year when 60,304 permits had been issued. Single-family units were down 28 percent while multifamily units were down 66 percent.

CIRB expects to finish the year with 35,600 total units, which would be by far the lowest total since records began being kept in 1954. The current record is 64,962 units, which was posted in 2008.

Snow noted the recently-expanded federal tax credit for first-time and move-up buyers could spur some activity in the first few months of 2010 that could lead to increased housing production, but encouraged California lawmakers to act in support of the housing industry.

“We’re expecting to see some positive movement generated by the federal tax credit early next year before it expires in April, which will hopefully lead to more job-generating new-home construction,” said Snow. “The bottom line is that housing creates jobs. Not just construction jobs, but jobs in related industries. We know the Governor is interested in focusing on job creation in 2010 and hope that includes a focus on the housing industry. The Administration and state lawmakers need to recognize the critical connection between home construction and jobs when they return next year and act to bolster the housing sector, which will reinvigorate the overall economy.”

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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.

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Media Contact:
Michael Castillo
Communications Manager
(916) 443-7933 ext. 346
mcastillo (at) cbia (dot) org