California Still in Housing Hole

California's homebuilders will produce more houses this year and next than they have in nearly 15 years, but it still won't be enough to make up for a shortage of new construction that has persisted since the 1990s and to meet future demand, according to two industry groups.The California Industry Research Board expects new construction to reach 180,000 units this year, the most since 1989, and perhaps as many as 186,000 houses and apartments in 2004. Nevertheless, the California Building Industry Association says this year's output is 50,000 houses and apartments shy of the number needed to keep pace with the Golden State's ever-increasing population. "Despite all our problems, California is a great place to live and work," CBIA president Harry Elliott said at the Pacific Coast Builder Conference. "And it will continue to grow, like it or not." Robert Rivinius, chief executive officer of the 6,000-member trade association, put the cumulative housing deficit in his state at close to 1 million units, and warned that it is still growing. "While the housing starts data are good news for the homebuilding industry and the state's economy, it cannot be overemphasized that we're still not building enough housing," he said. PCBC is the nation's largest regional building industry trade show.