For the third consecutive month, builders in California pulled an increasing number of permits compared to the previous year.
According to the Construction Industry Research Board, permits were issued for 2,782 new housing units in the Golden State in October. That's a 17% jump from October 2010, but it's down 26% from the previous month.
The mixed results don't portend a housing recovery, at least not yet, said Mike Winn, president of the California Building Industry Association. “This is definitely what we would like to continue seeing, but I wouldn't call this a recovery quite yet,” he said, noting that all of the incremental growth in permits can be attributed to the apartment sector.
“Single-family home building is still struggling and that's the sector that usually has a greater impact on jobs and the economy,” Winn said.
Permits for single-family homes totaled 1,444, a light 4% dip from October 2010 and down 8% from September. Multifamily permits totaled 1,338, up 54% from a year ago but down 38% the preceding month.
Year to date, permits were pulled for 37,274 total units, up 7% compared to the first 10 months of 2010, when 34,745 permits were issued. Permits for single-family homes were down 14% while multifamily permits were up 38%.
The research board's forecast for 2011 remains unchanged, with a total of 46,000 permits expected to be pulled this year. The expected single-family total of 21,500 units would be the lowest since CIRB began tracking permits in 1954. But the forecasted 44,762 permits for units in buildings with five or more units would be a 3% gain.
