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Housing production continues to climb in May, builders report

Wednesday, July 13, 2011

California housing production rose sharply in May and posted the highest monthly permit total for the year on the strength of the multifamily sector, according to the latest report from the California Building Industry Association.

Statistics from the Construction Industry Research Board (CIRB) show permits were pulled for 4,630 total housing units in May, up 42 percent from the same month a year ago and up 28 percent from April. Permits for single-family homes totaled 1,908, down 7 percent from May 2010 and down 6 percent from the previous month, while multifamily permits totaled 2,722, up 124 percent from a year ago and up 71 percent from April.

For the first five months of the year, permits were pulled for 18,120 total units, up 6 percent when compared to the first five months of 2010 when 17,050 permits were issued. Permits for single-family homes were down 17 percent while permits for multifamily units were up 45 percent.

Mike Winn, CBIA president and CEO, said this was welcome news and took note of the high number of permits issued during the month. "Other than December of 2010, this is the highest monthly total since December of 2008 when 4,658 permits were issued," said Winn. "This is also the first time in 2011 that year-to-date figures have surpassed last year's numbers over the same period, so it's a refreshing change and we hope to see further increases."

The San Jose-Sunnyvale-Santa Clara metropolitan area saw the total number of permits pulled for residential construction rise 5.4 percent from the previous month, though they were down 78 percent from a year ago. Gains in multifamily units were evident with a 350 percent increase from April to May 2011- four permits pulled in April and 18 pulled in May 2011. Production of multi-family units is still 96 percent below last year's number when 406 permits for multifamily units were pulled in May 2010. Permits for single-family homes declined 10 percent, from with 88 in April to 79 in May 2011, but increased 172 percent from the same time last year, when only 29 permits for single-family homes were pulled.

"Any gain in housing production is good news," said Gene Lentz, president of the Silicon Valley Association of REALTORS®. "That we are seeing an increase in building activity compared to last year is a positive sign. As California continues to grow in population, the need for housing is going to be even more critical."  

CIRB is forecasting a total of 51,400 permits will be issued in 2011, up from 2010's total of 44,762 permits, but still down from 2008's total of 64,962.

"The construction industry as a whole is still struggling," said Winn.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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