Archive for the 'Construction Industry Research Board' Tag
June 30th, 2009, 12:00 pm by Marilyn Kalfus, real estate reporter
New building permits for single-family homes in Orange County in May totaled 145, just 2 fewer than last May and up from 108 in April, new construction industry figures show.
Permits pulled in the first 5 months are at 487, down 27% from the same period a year ago.
 “Orange County is continually trending to inch up month over month,” said Kristine Thalman, CEO for the Orange County chapter of the California Building Industry Association. She said the $10,000 tax credit for new home buyers is continuing to spur demand since it went into effect in March. “As one of my builders called it, somebody turned the light on,” she said.
Statewide, builders pulled permits for 2,203 single-family homes in May, down 7 percent from April but 40 percent lower than in May 2008. On a seasonally adjusted basis, CIRB reported that May’s figures were down just 1.6 percent compared to April. “This is very good news,” said Robert Rivinius, the California Building Industry Associaton’s president and CEO. “As this continued strength in new-home construction shows, the credit is indeed working.”
The Franchise Tax Board has reported that nearly all of the $100 million for the program is spent. The homebuilding industry is trying to get it extended.
Based on the strength in the single-family market, CIRB for the first time this year has adjusted its annual forecast upward this month. The Board now expects single-family housing starts to total 24,900 and total housing starts to be 40,200 for the year.
For more from the CBIA, CLICK HERE
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Posted in: Brokers, builders, etc. • Meltdown • Seeking a bottom • Top tale • construction • Construction Industry Research Board • numbers | 14 Comments »
May 26th, 2009, 4:47 pm by Marilyn Kalfus, real estate reporter
There were 108 new building permits for single family homes issued in Orange County in April, down 52% over last April and 5.3 % from March, new construction industry figures show.
The first 4 months in the county saw a decrease of 34.7% in single family building permits pulled over the same period in 2008.
Statewide, the picture was brighter. Residential construction went up significantly in April from March and was the largest monthly total since October, 2008. The California Building Industry Association attributed the improvement to the homebuyer tax credit that went into effect in March.
Last month, 2,265 single-family permits were pulled in California, down 33 percent when compared to April 2008 — but up 21 percent when compared to March, according to the Construction Industry Research Board. In October, 2008, 2,352 permits were issued.
Robert Rivinius, CBIA’s President and CEO, said:
“The tax credit enacted in March is having the desired effect of stimulating home sales and clearing out inventory, which is helping to generate new construction and put people back to work in the process.
“However, almost two-thirds of the allocated funds for the credit have been applied for since the program was enacted just 12 weeks ago, which is why we are pushing for a second round of the tax credit by adding another $200 million to the fund in hopes of keeping the positive momentum going while generating construction and much-needed tax revenues for the state and local government.”
He cited a report from the Franchise Tax Board saying applications for the tax credit came to $65.7 million as of May 20.
In Orange County, a Building Industry Association official said the tax credit is helping to clear the inventory of new homes, which must occur before more can be built.
“In Orange County, we have three major landowners who haven’t built anything or pulled any permits in quite some time,” said Kristine Thalman, CEO for the Orange County chapter of the BIA. “Now you’re starting to see some (sales) activity again, which is good news.
“We need to increase the demand,” Thalman said. ”Our inventory was at 14 months (last year), now it’s down to about 5 months.”
The industry research board is forecasting permits will be pulled for just 40,000 total units in 2009, which would be the lowest number ever, down 38 percent from the record-low 64,962 units in 2008.
To read more, CLICK HERE.
For a chart of California metro areas, CLICK HERE.
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Posted in: Top tale • construction • Construction Industry Research Board • industry • numbers | 6 Comments »
January 26th, 2009, 5:30 pm by Jeff Collins
 Click to enlarge The Construction Industry Research Board estimates that developers took out $1.4 billion worth of building permits for commercial building projects in 2008. That’s …
- Below the average amount for the past decade and down 28% from 2007 construction permits.Orange County has averaged $1.5 billion worth of construction permits a year for the past decade.
- More than 55% of the permit value, however, was issued in the first half of 2008, with permit activity by month peaking in July at $168 million. The slowest month permit-wise was September when just $80 million worth of permits were issued.
- The biggest construction project of the year was a $64 million parking structure in Irvine, the research board reported.
- Irvine approved $344 million worth of construction last year, the largest amount among O.C. cities. Anaheim was second with $214 million worth of building permits. Newport Beach was third, approving $110 million in new construction.
The permits are an indication of future construction since actual starts lag the issuance of a building permit by several months or more.
Here’s a breakdown of building permits for the past decade in millions:
| Year |
Cmml |
Indus |
Other |
Alts Adds |
Total |
| 1999 |
$796 |
$123 |
$121 |
$574 |
$1,614 |
| 2000 |
$874 |
$87 |
$133 |
$667 |
$1,762 |
| 2001 |
$566 |
$90 |
$173 |
$521 |
$1,350 |
| 2002 |
$477 |
$62 |
$114 |
$556 |
$1,209 |
| 2003 |
$214 |
$68 |
$183 |
$540 |
$1,006 |
| 2004 |
$352 |
$26 |
$198 |
$556 |
$1,133 |
| 2005 |
$600 |
$27 |
$233 |
$635 |
$1,495 |
| 2006 |
$1,273 |
$91 |
$317 |
$720 |
$2,401 |
| 2007 |
$909 |
$52 |
$288 |
$757 |
$2,005 |
| 2008 |
$424 |
$14 |
$185 |
$815 |
$1,438 |
Source: Construction Industry Research Board; Cmml=commercial; Indus=industrial; Alts Adds=alterations & additions
More real estate news …
Posted in: Brokers, builders, etc. • Commercial property • Top tale • building permits • construction • Construction Industry Research Board | 1 Comment »
January 21st, 2009, 12:16 pm by Jeff Collins
 Click to enlarge Orange County governments issued 3,156 building permits to homebuilders in 2008, the slowest year in a stream of figures dating back to 1946.
The non-profit Construction Industry Research Board reports that the level of homebuilding here has fallen to just 7% of the amount in 1963 — O.C. homebuilding’s pinnacle — when residential construction peaked at 44,656 units.
Builders have cut back on construction as sales of new homes fell in Orange County to just over 2,000 units last year, with newly built sales continuing to drop even as existing home sales began to rebound, according to MDA DataQuick. That’s the lowest level of new-home sales in statistics dating back to 1988. On average, Orange County builders sold nearly 7,000 newly built homes a year prior to 2008.
“The builders are in a holding pattern, staying alive until the market recovers,” a press release quoted DataQuick President John Walsh as saying.
 Ganahl Ganahl Lumber President Peter Ganahl said that sales at his chain has fallen 25% from its peak year in 2006 even though large homebuilding companies and their subcontractors make up a small portion of his chain’s clientele.
Many of the new homes that are being built are going up in the coastal cities, where custom homes by smaller, individual contractors predominate, Ganahl said. The bulk of the slowdown is among “production” homebuilders in central and south Orange County.
Still smaller contractors are affected too, he said. Some have gone out of business, and those that are surviving had to lay off workers because they’re less busy, he said.
“We think (homebuilding) will be lower in the coming year,” Ganahl added. “We are still in search of that supposed bottom out there. Our data tells us we aren’t there yet.”
Research board figures show that local governments issued 1,299 permits for “single-family” homes, consisting of houses, townhomes and other types of side-by-side condos. That’s the lowest in statistical breakdowns dating to 1955. Single-family home construction had been falling anyway, declining 84% in the past 11 years. Condo construction is close to outpacing construction of houses as Orange County runs out of buildable land.
But last year, single-family permits dropped 40% from 2007 levels and more than 65% from the number issued in 2006, research board figures show.
The number of permits for “multi-family” homes — consisting of apartments and multi-story condos — fell to 1,857 last year. The only years that were lower since the mid-1950s were 1955 and 1956.
In other real estate news …
Posted in: Brokers, builders, etc. • Real estate jobs • Selling patterns • Top tale • building permits • Construction Industry Research Board • home building • homebuilding • Homebuilding's worst year | 13 Comments »
January 8th, 2009, 1:44 am by Jeff Collins
 Click to enlarge The Construction Industry Research Board reported that Orange County governments issued 47 building permits for houses and townhomes in November, the lowest number for any month in records dating back to 1988.
It was the first time since ‘88 that the monthly total for “single-family” permits in O.C. had fallen below 50, and just the sixth time there were fewer than 100 in any month.
The non-profit research board, which tracks construction permits in California, reported that O.C. governments issued 183 residential building permits in November, down 54% from November 2007. The board reported that 136 permits were issued for apartments and multi-story condos.
Building permits are a leading indicator of future construction. Research board figures for November show also:
- The total estimated value for all residential permits for the entire year through November was $996 million, down 42% from the $1.7 billion worth of construction approved from January-November 2007.
- The estimated value of building permits for non-residential construction — consisting of such development as commercial, industrial, governmental and medical buildings — was $74 million in November. That’s down 26% from November 2007.
- Non-residential permits for the year through November totaled $1.3 billion, down 28% from the year before.
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Posted in: Brokers, builders, etc. • Commercial property • Top tale • building permits • Construction Industry Research Board • housing market • new homes | 7 Comments »
November 30th, 2008, 2:00 pm by Jeff Collins
 Click to enlarge The Construction Industry Research Board reports that the estimated value of building permits for non-residential projects — commercial development, industrial sites and schools — totaled nearly $1.3 billion this year so far.
While that’s an average building pace for the past decade, it’s well below the amount of construction seen during the building boom of the past two years. Details …
- Building permit values are down 29% from last year and 39% from the building peak experienced in 2006.
- According to the research board, local governments issued nearly $2.1 billion worth of permits in the first 10 months of 2006 and almost $1.8 billion worth in through October of 2007.
- The largest decline occurred in the hotel/motel sector, which saw permits fall by 77%, research board figures show.
- The next biggest percentage drop was a 69% decrease in industrial construction, followed by a 59% decrease in retail development.
- Overall, the research board estimates the total value of residential building permits at $928 million, down 42% from last year.
The table below shows a breakdown of non-residential building permits issued during the first 10 months of each year:
| Year |
Cmml |
Indus |
Other |
Alts
Adds |
Total |
| 1999 |
$646 |
$109 |
$95 |
$495 |
$1,345 |
| 2000 |
$777 |
$75 |
$105 |
$569 |
$1,526 |
| 2001 |
$516 |
$89 |
$148 |
$460 |
$1,213 |
| 2002 |
$391 |
$61 |
$99 |
$487 |
$1,038 |
| 2003 |
$176 |
$66 |
$161 |
$468 |
$871 |
| 2004 |
$286 |
$24 |
$172 |
$481 |
$964 |
| 2005 |
$443 |
$25 |
$195 |
$543 |
$1,206 |
| 2006 |
$1,137 |
$66 |
$246 |
$608 |
$2,056 |
| 2007 |
$831 |
$46 |
$250 |
$646 |
$1,773 |
| 2008 |
$389 |
$14 |
$169 |
$691 |
$1,262 |
Source: Construction Industry Research Board; Cmml=commercial; Indus=industrial; Alts/Adds=alterations & additions
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Posted in: Brokers, builders, etc. • Top tale • Commercial property • commercial real estate • construction • Construction Industry Research Board • development | Post a Comment »
November 26th, 2008, 12:00 pm by Jeff Collins
 Homebuilding in Orange County appears to have fallen this year to the lowest level since World War II, new building permit figures show. (Click on chart at right to enlarge.)
As of October, local governments had issued building permits for 2,884 houses, condos and apartments, or 55% fewer than in the same period of 2007, according to the non-profit Construction Industry Research Board.
This year’s total is lower than the 10-month average for any year in research board records dating back to 1946. While 10-month averages don’t take into account seasonal slowdowns that could make some years look artificially high, only a few years in the 1940s come even close to being as low as this year’s permit totals.
In addition, Orange County averaged more than 9,000 building permits a year from January through October during the previous 20 years, more than triple this year’s development pace.
So far, just 1,186 permits have been issued for single-family houses this year, compared to a 20-year average of 5,000 homes a year. Builders received 1,698 permits for apartments and multi-story condos, vs. the average of nearly 4,000 units a year.
The permit figures are an indication that future construction will continue to fall.
Construction of single-family homes has fallen 82% during the past decade as the amount of buildable land becomes increasingly scarce, research board figures show. However, the housing slump has given added impetus to the slowdown as homebuilders curtailed development and slashed prices to reduce their backlog of unsold homes.
Read more …
Posted in: Brokers, builders, etc. • Top tale • construction • Construction Industry Research Board • home building • homebuilding | 8 Comments »
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