California Experiences Substantial Growth in Residential Construction
According to the latest reports we can now easily say that in California there is an upsurge in residential construction. In fact, in Southern California in the last three months about 2,097 new single-family homes were built which is new high in the residential construction market. It is about 56% rise from that in the period before.
The shortage of existing residential properties nowadays has led to new demands of purchasing new homes. This is because many homeowners are now unable to sell their homes because of their position under water and hence they are also toying with the idea of purchasing new places for living. During the post-bubble housing malaise the California construction company had lost 425,000 jobs. But then it regained its position by employing about a million people in the jobs.
The jobs which had gone away would not come back but there would be an increase in the jobs with the residential construction growth. However, it is happening gradually and it is concentrated in the urban coastal areas. It seems that the residential construction growth would contribute immensely to the overall economic growth of California. The economic growth of California is directly proportional to the residential growth. It is seen that since last September the residential construction in California is creating jobs on annual basis. It is about 1.1% in a yearly basis. Though it is not much, it is still the best performance over the years.
What is the Pattern of Residential Growth in California?
It is seen that the urban coastal areas of the metros of California are registered an upsurge in residential growth. The pattern shows that those areas where there is increase in multi-family buildings, demands are higher there. Remodeled houses are also in popular demand. The areas where there are new home projects going on, there is also rise in the demand of the houses. However, though the investor purchases have declined and more investment are coming in the market, the asking home prices are however, still rising and that too at the beginning of the spring housing season. It is rising about 1% over the months nationally and 2.9% quarterly.
What are the Growth Rates in the Cities?
In San Jose, the construction jobs are up by 10.1% and there is a growth rate of 12% for those engaged in residential construction. The construction jobs in Los Angeles are up 4.7% annually and that includes remodeling of the residences along with the new apartment building activities. In Oakland metro the increase in construction is by 2.7% annually. Orange County had seen a downfall in the construction jobs market. However, the growth became a bit positive between November 2010 and August 2011.
From these data it is clear that the urban residential growth in California is slow but rising steadily which is indeed a good sign. Though many cities have not really caught up the rise in residential real estate but it seems that growth will also increase in other cities soon.