HOUSING STARTS DECLINE AS BUILDERS REVERT TO "JUST IN TIME" APPROACH
Housing starts in the Golden State continue to lag behind last year's production levels as the state's home builders reduce existing inventory and follow a "just in time" building strategy to meet demand, according to a recent report from the California Building Industry Association (CBIA).
While housing starts were up 38.8 percent in March compared with February, total production fell 22.2 percent from a year ago. During the first three months of the year, builders started 32,646 new housing units, down 28 percent from the same period last year.In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide.
The annual pace of construction spending slowed for the 12th consecutive month in March, falling 2 percent from a year ago to a seasonally adjusted annual rate of $1.19 trillion. Residential construction spending declined 14.2 percent to a rate of $577.8 billion, while the value of nonresidential construction activity rose 13.2 percent to a rate of $610 billion, according to the report.
**Taken from the California Association of Realtors Bulletin, dated May 2nd, 2007.
Housing starts in the Golden State continue to lag behind last year's production levels as the state's home builders reduce existing inventory and follow a "just in time" building strategy to meet demand, according to a recent report from the California Building Industry Association (CBIA).
While housing starts were up 38.8 percent in March compared with February, total production fell 22.2 percent from a year ago. During the first three months of the year, builders started 32,646 new housing units, down 28 percent from the same period last year.In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide.
The annual pace of construction spending slowed for the 12th consecutive month in March, falling 2 percent from a year ago to a seasonally adjusted annual rate of $1.19 trillion. Residential construction spending declined 14.2 percent to a rate of $577.8 billion, while the value of nonresidential construction activity rose 13.2 percent to a rate of $610 billion, according to the report.
**Taken from the California Association of Realtors Bulletin, dated May 2nd, 2007.
