California Builders In 'Worst Shape Ever,' Group Claims

How bad is the new home business in California? Pretty bad, according to the chairman of the California Building Industry Association, and it goes way beyond housing starts and sales. "Every builder I know has laid off most of their staff, and contractors and suppliers we've done business with for years have folded up shop," builder Horace Hogan II told reporters at the Pacific Coast Builders Conference in San Francisco. "I can assure you this is the worst housing recession we've ever experienced." As bad as it was last year, when builders in the Golden State pulled just 65,000 permits, "2009 looks like it might be worse," Mr. Hogan said. Currently, the Construction Industry Research Board is projecting construction will start on a mere 40,000 units this year. "California's homebuilding industry is in the worst shape ever," the industry leader said.