California New Home Construction Falls in August

California new home construction

Demand for new homes fell in August, a decline California homebuilders attributed to the discontinuation of the successful CA home buyer tax credit program, according to a recent report by the California Building Industry Association (CBIA). “The significant drop in traffic in July due to the state closing out the successful tax credit program continued in August, holding down new-home starts and, correspondingly, job creation,” said CBIA President and CEO Liz Snow.

Homebuilders pulled permits for 2,911 total housing units in August, down 5 percent from July, according to statistics compiled by the Construction Industry Research Board (CIRB). CIRB is forecasting permits will be pulled for 39,500 total units in 2009, the lowest total on record. Read more