REAL ESTATE : Declining Number of Building Permits Looks Like Bad Sign for O.C. Economy
The number of building permits issued to developers each month is a prime indicator of the direction in which the economy is heading.
That number has been going down in Orange County for several months now, and it looks as if the decline won’t stop any time soon.
In July, builders were issued permits for 569 units in the county, down from about 1,450 in July 1989. In August, the total dropped to 489 units from 1,255 a year earlier.
The county’s 28 cities usually account for about half the total. Permits issued for unincorporated areas--which include traditional building hot spots such as Rancho Santa Margarita, Foothill Ranch and Aliso Viejo--make up the other half.
The county’s share fell to about 18% of the total in August, with permits issued for just 86 units. September permit information for the cities isn’t available yet, but county officials say they issued permits for a mere 40 residential units in unincorporated areas last month.
If that’s half the total for all of Orange County, the bottom really has dropped out. And even if it is only 10%, that still would make September--with about 400 units--the worst month since the real estate depression of 1981.
