Housing starts surged in California during August, thanks largely to a huge jump in the multifamily sector.
According to the California Industry Research Board, starts statewide posted a 30% year-over-year increase in August.
Although permits for single-family homes were down 4% from August 2010, they were up 20% from the previous month. And multifamily permits rocketed 230% higher compared to July and 68% from August a year ago.
In Los Angeles County, multifamily permits were up 712% from July and 99% from August last year.
For the first eight months of the year, permits were pulled for 30,128 total units statewide, a 3% gain compared to the same period in 2010, when 29,374 permits were issued. Permits for single-family homes were down 16% but permits for multi-family units were up 30%.
Although happy to see some positive news for a change, Mike Winn, president of the California Building Industry Association, tempered that enthusiasm.
"It's great to see the increase in the overall numbers and we hope to see continued increases throughout the remainder of the year with the hope of improving upon last year's pace," Winn said. "The fact remains that economic conditions in the state --- tight credit for buyers and builders, the glut of foreclosed and distressed properties on the market and high unemployment --- are keeping California's struggling housing industry from experiencing the type of robust recovery we've seen in the past."
Despite the stronger numbers, the research board's forecast for the entire year remained at 46,700 units, which would put production for 2011 just a fraction ahead of the 44,762 units the year before. By comparison, builders in the state produced 64,962 units in 2008.
