Despite a sizeable decline in California’s housing starts between June and July, production is still running above the year-ago pace, the California Building Industry Association reported Tuesday.

New housing units, as measured by building permits, were down 16.4 percent from June, going from 21,385 units to a total of 17,875 units in July. However, housing starts were up by a robust 8.2 percent compared to July 2004.

According to figures compiled by the Construction Industry Research Board, single-family home production dipped 17.1 percent from June to 13,658 starts in July, but that figure was 8.9 percent ahead of July 2004. Multifamily housing starts were at 4,217 units, down 14.2 percent from June but up 5.8 percent compared to last July.

The robust production so far this year increases the likelihood that total housing starts for 2005 will be near last year’s 212,960, the highest level in 15 years. But CBIA Chief Executive Officer Robert Rivinius, noting the affordability rate for homes in California continues to plummet, said production still is not keeping up with the need.

“The state’s population continues to grow by 500,000 to 600,000 people each year, so we need to be building nearly 250,000 homes a year just to keep up with demand. Until construction is able to keep up with demand, housing costs are likely to continue climbing,” Rivinius said.

The California Building Industry Association is a statewide trade association representing more than 6,300 businesses comprised of home builders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals.


What’s your opinion? Send your Letter to the Editor to

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription