Housing Construction Up Again in July
The California Building Industry Association reported Tuesday that housing production continued an upward, year-to-year trend in July, thanks to a strong showing by the multifamily sector. There were a total of 4,165 housing permits pulled in July, a 35 percent jump from July 2008, while down ten percent from June, according to statistics compiled by the Construction Industry Research Board (CIRB). Permits for single-family units totaled 1,950, which was actually down 9 percent from last year, while permits for multifamily units climbed 135 percent from last July to a total of 2,214.
During 2010's first seven months, a total of 22,755 permits were pulled for all housing types, 22 percent more than during the same period last year. Single-family units experienced a rise of 7 percent during that period, while multifamily housing permits rose a staggering 50 percent.
Analysts, while encouraged by the step in the right direction represented by the reports, are concerned that construction remains near historically low levels. With so much unsold inventory on the market, especially thanks to the recent flood of foreclosures, construction is expected to remain low though the end of the year. CIRB
has updated expectations for yearly construction to a total of 47,500 units, which would be an increase of 11,000 units, or 30 percent, over 2009's record-low.