Given significant year-over-year increases in permit applications for construction of multifamily homes, the California housing market will soon be prepared for an influx of people moving into these units, the California Building Industry Association announced today.
Recently released Construction Industry Research Board data showed the number of permits issued for construction of single family homes last month was down 42 percent from May 2010 and 28 percent from April 2011. However, the 2,722 multifamily permits pulled in May represented a 71 percent increase from April and a 124 percent increase from May 2010.
So far this year, permits for multifamily units are up 45 percent from where they were 12 months ago, and have substantially boosted California's overall permit figures. CIRB now predicts total permits for 2011 will outnumber the total for 2010 by roughly 6,600.
A June 21 California Association of Realtors report showed the first increase in pending home sales in the state in over a year. However, recent DataQuick numbers indicated the Southern California sector underperformed in May, with year-over-year home sales volumes dropping and the median home price down 8.2 percent from where it was last spring.