California's Monthly New Construction Drops Below 3,000 Units

The pace of new construction in California has slowed to under 3,000 units a month, according to the latest figures from the Construction Industry Research Board. Builders in the Golden State pulled just 2,017 single-family permits in October and a mere 798 multifamily units, a grand total of 2,815. That's less than 10 new dwelling units a day for the country's largest state. During the first 10 months of the year, builders started 29,901 units, a 46% decline from the same period in 2008, when 55,632 permits were issued, according to CIRB. Single-family construction dropped 33% for the 10-month period, while multifamily construction was down 64%. The research board is projecting a total of just 36,000 starts for 2009, which, if it is right, would be the lowest on record. California Building Industry Association president and CEO Liz Snow is expecting the new and extended federal tax credits to give the business a much-need shot in the arm. Now, the group is calling on state lawmakers to resurrect the state's $10,000 tax credit, which expired a few months ago.