Builders in November pulled construction permits at a142,800-unit annual rate, down 1% from the level of November 1999.But the rate was up 7% from the previous month, the report says,thanks to unusually good autumn weather and a drop in mortgagerates.
California Department of Finance chief economist Ted Gibsonoriginally forecast that permits for 156,000 units would be pulledthis year, but recently revised his projection down to 147,600.Builders blame the slowdown on high land prices and costlybureaucratic red tape.
Real estate experts say the state needs as many as 250,000 newhomes a year just to keep pace with its fast-growing population.With no big construction boom looming, Gibson and other analystssay pressure on rental rates and home prices will remain high.
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
*May exclude premium content
Already have an account?
Sign In Now
© 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.
