New home building in California dipped slightly in November from the same month last year, falling well below the number needed to meet demand and keeping pressure on the already record rents and home prices.
Statewide, builders pulled permits last month at a rate that would result in 142,800 new homes this year, less than 1% below the level of home building activity in November 1999, according to a monthly housing report released Wednesday by the state Department of Finance.
Last month's activity, though, was still 7% higher than the previous month.
Ted Gibson, chief economist at the state's Department of Finance, early this year predicted that 156,000 permits would be pulled this year, and has since lowered his estimates. He now predicts that 147,600 permits will be pulled, higher than any year since 1990, when 164,300 housing starts were recorded.
This year's rate, real estate experts say, is far below the 220,000 to 250,000 units a year needed to meet housing demand.