Housing Stimulus Sought By California Building Industry Association
Category:
Published: Monday, February 16, 2009
The California Building Industrial Association is concerned that record low housing production, that is the construction of new single family homes and multi-family housing units, will continue to slow the state's economy, further depress the housing market, and negatively impacting countless state and local government agencies. The solution, according to a report the CBIA issued last week is to enact a homebuyer tax credit, giving relief to purchasers and helping to stimulate demand for new construction.
Housing Starts At Lowest Level Since 1993
The CBIA anticipates only 63,400 units will be built in 2009, down 3 percent from last year's record low of 65,380. In comparison, during the recession of the early 1980s, over 85,000 homes were built per year. Experts forecast that over 220,000 new housing units are needed each year in California to keep up with the demand fueled by population growth. The actual forecast, prepared by the Construction Industry Research Board, predicts California will generate 30,000 single family homes in 2009 and 33,400 multi-family units. These numbers are the lowest in recent memory, according to industry experts.
Housing Industry Could Revitalize the Economy
It is no secret that construction and the housing industry are key elements of the state's economy. With new housing starts down for a second straight year, law makers should be looking for ways bolster one of California's leading industries, according to Robert Rivinius, CBIA's President and CEO. "The housing industry is an extremely productive economic generator when operating at normal levels, helping to create jobs and generate much-needed revenue for state and local governments" Rivinius said last week. This is especially true in foreclosure-rich areas such as San Diego where assessed valuations have dropped nearly 40% from a year ago and local governments are feeling the pinch of reduced property tax revenues.
By increasing the number of new homes built, the CBIA believes the market could turn around, pointing to similar strategies used during the 1970s when the housing market saw much the same depreciation it is experiencing now. The only way to increase the number of homes built would be to increase demand, something the tax credits would help accomplish. The CBIA stated "that in today's economic climate, a tax credit for new homebuyers would provide a much needed jolt to the languishing housing market and in turn, the overall economy."
New Homes Could Improve San Diego Foreclosures Market
While typically new home construction creates affordable housing for first time home buyers or real estate investors, it also helps keep home prices competitive and leads to better deals on San Diego foreclosures. With more houses on the market, sellers are looking for ways to entice buyers any way they can. To take advantage of the San Diego bank homes market, contact Richard Elias today at 1-800-474-1919.
Home sales and median home prices were both up in May, indicating the market is beginning to rebound from record numbers of foreclosures. There are still plenty of San Diego foreclosures available, however and Richard Elias explains what the rise in home prices means to foreclosures buyers.
San Diego foreclosures benefit from new transit projects across the county. Richard Elias explains what the $10 million in Smart Growth funds will pay for and what it means for buyers of San Diego bank homes.
San Diego foreclosures are disappearing from the listings, shrinking inventory and creating a seller’s market. Richard Elias offers insight into the current San Diego foreclosures market.
About this Page: The California Building Industry Association is calling for federal tax credits for homebuyers as a way to stimulate the state’s housing market and the overall economy. Richard Elias explains what that means for the San Diego foreclosures market.
Housing Stimulus Sought By California Building Industry Association
Categories
