Golden State Builders See Drop-Off in Units

California's home builders last year produced just 65,380 units in a state where population estimates alone dictate a need for nearly three times that many new houses annually. And 2009 could be even tougher yet on the state's moribund housing industry. The California Building Industry Association is predicting that only 63,400 units will be started in 2009. That's a 3% decline from 2008's all-time low. The previous low point in the Golden State's housing production also was during a recession. But in 1993, builders in the state still managed to start 84,656 units. In the early 1980s recession, production bottomed out at 85,656 units in '82. The 2009 forecast, prepared by the Construction Industry Research Board, predicts California builders will produce 30,000 single-family units in 2009, down 9% from the 33,048 constructed in 2008, and 33,400 multifamily units, up a modest 3% from the 32,332 permits issued in 2008. "These numbers do not bode well for our industry, or the economy, and we could be in for a very rough year," said CBIA President Robert Rivinius.