April 10, 2019
California typically experiences an uptick in March permits correlating with warmer weather, but will March 2019 housing units surpass those of 2018?
Upon receiving the February 2019 monthly ‘Construction Review’ report, Dan Dunmoyer, CBIA President, commented:
“No matter how you slice it, housing permits are down—both month-over-month and year-over-year. Hopefully, Spring will bloom for housing!”
February revealed some major housing unit decreases, which is not uncommon for this time of year, but what can be worrisome is not only the month-to-month decrease, but the annual year-to-date decrease from February 2018.
New housing units in building permits issued for the month of February 2019 totaled 6,158, down 41% from 10,360 units in January of 2019 and down 23% from 7,979 units in February of 2018. Read the full summary in the February California Construction Review here.
With total 2018 statewide housing units shaping up to be only a 1% increase from 2017, the statistics point to a continued lull in homebuilding activity, and the first quarter of 2019 may not be much of an improvement.
California typically experiences an uptick in March permits correlating with warmer weather, but will March 2019 housing units surpass those of 2018? If the City of Los Angeles is any indication, the year-to-date numbers could prove very disappointing.
Preliminary statistics for LA City in March 2019 show a 62% increase in total single- and multi-family dwelling units from February 2019, but a 34% decrease from March 2018. It appears spring may not “bloom” for housing activity this year after all…
A more detailed look at Q1-2019 will be available in the 2018 Annual Building Permit Summary Report, scheduled for release in early June of this year at the CIRB Online Store.
Email CHF-CIRB@mychf.org for more information on building permit data, custom reports, subscription services and more.