The April 2015 California Construction Review (CCR), published by the CIRB Report, revealed total new units were down by 20% in April 2015, and multi-family statistics showed a 35% decrease from the prior month and a 36% year-over-year decrease.
Meanwhile, a total of 4,090 single-family units were constructed in April 2015 – a 6% increase from 3,857 units in March 2015 and a 34% increase from the 3,855 units produced in April 2014.
In a U.S. News article published on June 4th, Another Step for the Housing Recovery, author, Robert Dietz, claims 2015 may be the first year since 2011 in which U.S. new home construction will exceed building of new multi-family dwellings.
According to historical CIRB data, by the close of 2011, California had amassed a total of 25,705 new multi-family units, which were 4,074 more units constructed than single-family dwellings. This pattern continued through 2014, but the tide may be turning in the current year.
Year-to-date comparisons of total single-family units already show a 20% increase from 26,957 cumulative units in April 2014 to the 32,371 statewide homes in April 2015.
Dietz’s article observes that “The accelerating growth rate for single-family starts will produce a number of benefits“, the most significant of which will be an increase in construction employment opportunities.
While construction jobs in the State of California have been showing month-by-month increases throughout 2015, according to the state Employment Development Department, national homeownership rates are still low, as shown by the Census Bureau, falling by “63.7% in the first quarter.”
Dietz believes that “A future uptick in the homeownership rate will mark the final progression in the ongoing housing recovery.”
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