Permits for residential construction statewide were taken out ata 188,160 annual rate in June, up 25% from a year earlier,according to the Burbank-based Construction Industry ResearchBoard. Multifamily permits accounted for a healthy 42% of activity,compared to a usual share in the 30%- or even 20%-range, says BenBartolotto, the nonprofit group's economist.

"More than half of all the apartment permits were pulled inthree cities—Irvine, San Diego and San Jose," Bartolotto adds.Vacancies in all three of those communities have dropped to about2%, he notes, as soaring house values have forced more people torent instead of buy.

Overall, says Bartolotto, California developers are expected tobuild about 55,000 apartment units in the state this year. Thoughthat would represent a healthy 40% gain from 1999, it would stillbe far short of demand.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.