Industry News

California real estate slowdown will drag economy

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A slowing real estate market in California will hurt the state's economy, according to the University of California, Los Angeles, economic forecast. The UCLA Anderson Forecast, which also reports on national and local expectations, projects that 200,000 jobs will likely be lost in California's construction sector "as residential construction and remodeling slow markedly," according to an announcement today. Christopher Thornberg, senior economist for the forecast and author of the California forecast, said, "The only debate now is how hard a landing there will be and what will it mean for the general economy." In his report, Thornberg calls for a rise in the state's unemployment rate, from 5.6 percent in fourth-quarter 2006 to 6.3 percent in fourth-quarter 2007. "On the positive side, the report says that jobs in professional services are growing and even though the manufacturing sector is not adding many jobs, output continues to rise. While the cooling housing market certainly has a...