Report: Housing Industry Key to CA Recovery

The slumping new home business is a large factor in California's monetary woes, according to a preliminary report that shows the downturn has resulted in the loss of hundreds or thousands of jobs and tens of billions of dollars in economic output to the state's economy. The study found that new housing construction contributed just $14.3 billion to California's economy in 2009 and generated 80,000 jobs. That's only a fraction of the $67.7 billion and 487,000 jobs the industry added in 2005. The report also found that every dollar spent on new housing construction in the state generates additional 80 cents in total economic activity and that each job created through residential construction supports an additional 1.2 jobs. The "Economic Benefits of Housing" report details the role the housing industry plays in the economic health of California and was conducted as the fourth update to a report first commissioned in 2003. The Center for Strategic Research analyzed construction and market data from around the state and quantified the impact of California's construction sector to the state's economy. "It has never been more evident that we must revive the housing industry in order to revive California's economy," said Liz Snow, president of the California Building Industry Association.