California home builders are pulling back, deflating hopes for housing relief

[TexasTowelie]

Home builders are pulling back from new construction, the opposite of what economists say is needed to ease California’s housing affordability crisis.

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.

Read more: https://www.latimes.com/business/story/2019-08-08/california-housing-shortage-home-builders

[NoMoreRepugs]

1. I don't usually think Homebuilders as a group are among the smartest guys in the room but this

time they may be smart in pulling back a bit as the economy begins to show signs of weakening.

[Wellstone ruled]

2. Surprised it has taken this long for this story to pop.

Nevada Home Builders warned last October of this Scenario was staring them in their face. But the Board of Realtors and the Visitor and Convention Bureau would not have any of that and ran Op- ed's touting all the Stadium and Road Construction and how could that be.

Something is about to go Boom once again. Way to much tension in the air for Bloom to continue.