California housing production, as measured by new units in building permits, continued to sag in September as permits declined by 9.6% from August, according to Roger C. Werbel, California Building Industry Assn. president.
In September, housing units were produced at an annual rate of 212,300, down from August's 234,800 annual rate. September's building permit action dropped 29.9% in comparison to boom year 1986's total of 302,800 annual permits.
Werbel, a Monterey Park-based home builder, noted that a majority of September's production decline was in the multitenant sector. Multifamily dropped 15.8% (85,500 annual units) in September compared to August's 101,500. Comparing this September's multifamily permits with September 1986's 152,600 annual rate, the drop off was 44%.
The CBIA president said that multifamily finally reached its predicted slump during August and September, following the passage of the Tax Reform Act of 1986.