Industry News

California’s new-home market to ease

Economist predicts fourth-highest housing production in 17 years

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New-home construction in California is expected to continue cooling off for the remainder of 2006 as the housing market adjusts from a superheated state to more normal conditions, but production this year is still expected to be the fourth-highest in 17 years, according to the midyear housing forecast issued Wednesday by the California Building Industry Association. CBIA Chief Economist Alan Nevin said he now expects overall housing starts in California this year to total between 170,000 and 180,000, down 15 percent to 20 percent from 2005. Multifamily construction remains extremely strong in most markets and is expected to total between 45,000 and 55,000 units -- about the same as last year's levels -- but single-family starts are expected to drop to between 125,000 and 135,000, compared to nearly 155,000 in 2005 Nevin said during a press conference at the PCBC home building show in San Francisco yesterday. "In the Bay Area, Orange County and in the Los Angeles Basin, we see conti...