Statewide, California construction activity rose last year to its highest level in more than 10 years, a real estate information service reported. Financial institutions provided $23.1 billion in funding for construction projects last year. That was up 3.4% from $22.3 billion for 1999, according to DataQuick Information Systems.
Last year's total was the highest since $32 billion was made available to developers in 1990. The decade's low point was in 1993, when $6.9 billion was provided in construction financing.
"These are dollars that get pumped right into the local economy in the form of job payroll and building supply purchasing. It will be interesting to see what happens to construction activity during the next few months, when lower interest rates play off against increased caution on the part of financial institutions," said Mike Ela, DataQuick president.
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