New Construction Slows in California, Despite Need for Housing

New construction has slowed in California this year, aggravating the shortage of affordable housing in the state, the Los Angeles Times reports.

In the first six months of 2019, builders gained approval for 51,178 new homes in California, nearly 20% fewer than the same period a year earlier. That puts the state on track for the first meaningful annual decline since the recession.

In the Los Angeles-Orange County metro area, total permits — an indication of future construction — fell by 25%, according to data from the U.S. Census Bureau. Single-family permits dropped 18.5% in the region, while those for multifamily projects such as apartment buildings -- a category in which activity tends to be more volatile -- fell 28.6%.

“We are going in exactly the wrong direction,” said Christopher Thornberg, founding partner of Beacon Economics.

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