State’s Housing Permits Decline 10% in January

California home builders acquired 10% fewer permits in January than a year earlier, another sign that construction will slow amid softening demand for new homes, data released Thursday showed.

Even though experts tend to dismiss January activity because the month is typically one of the year’s slowest, the numbers are in line with industry forecasts that as many as 11% fewer permits will be issued this year versus 2005.

The California Building Industry Assn. predicts that 185,000 to 205,000 permits will be issued in 2006, compared with 208,000 last year. A builder seeks a permit before starting a house.

New-home construction began to slow late last year amid softening demand for new and existing homes in California and nationwide. Some industry experts predict that new-home sales could decline 10% or more in markets that have seen record results in recent years.

The January permit numbers “follow what’s been happening” in housing generally, said Ben Bartolotto, research director for the Burbank-based Construction Industry Research Board. “It’s part of the normal cycle.”

Building permits issued last month totaled 12,357 -- 9,036 for single-family homes and 3,321 for apartments and condominiums. That was an 8% drop from December and was in contrast to 13,787 permits issued in January 2005.

Orange County saw a fourfold rise in permits year over year, thanks to a surge in condo and apartment production. Builders there got 1,137 permits compared with 285 a year earlier. For the first time, more attached units such as condos were built than single-family homes in Orange County last year.

Meanwhile, the number of Los Angeles County permits fell 23%. San Bernardino and Riverside counties saw a 10% drop.