NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
California housing starts declined for the fifth consecutive month during July 2006, falling 40.8 percent compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, builders are on track to produce 180,000 new single-family and multifamily units in California during 2006. CBIA anticipates multifamily construction to remain strong in most markets for the remainder of 2006 but expects single-family starts to fall by 20,000 to 30,000 units compared with 155,000 single-family starts in 2005.
Based on the number of building permits issued, 11,121 new housing units were started throughout the state in July, with single-family units accounting for 73 percent of the starts. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario region, followed by the Sacramento-Arden-Roseville and Los Angeles-Long Beach-Glendale regions.