Residential Permits Reach New Low in Orange County : Construction: The 129 issued in January is thought to be the lowest number for any month since the 1950s.

The number of new housing permits issued to builders in Orange County dropped in January to what is likely the lowest level for any month since the first postwar boom of the 1950s, the Construction Industry Research Board reported Tuesday.

In all, builders took out permits for only 129 dwelling units in January, 72 of which were single-family homes and the remaining 57 multiple-family units, according to the Burbank-based organization. In December, 322 permits were issued and in January a year ago, 1,104.

“Our records get spotty before 1986, but I would say that this is the lowest total for any month” in the last four decades, said Ben Bartolotto, CIRB research director.

Commercial building also continued to slow sharply. The value of permits for office, industrial and retail projects in January was $54.1 million, the lowest level in at least five years. In December, commercial permits issued hit $103.2 million, and in January, 1990, $148.1 million.

Permits activity is a precursor of future building. Thus Chapman College economist James Doti said the drop in residential-permit activity in recent months will translate into a near halt in building activity in the second and third quarters of the year.

And that, he said, will help keep the county’s unemployment rate in the 4% and 5% range as construction workers continue to be laid off. In January, the county’s unemployment level climbed to 4.7% as 3,900 construction workers lost their jobs.

Builders have been holding back on new construction for more than a year now because of the soft market and relatively high inventory of homes and condominiums in the county.

But Bartolotto said January’s poor showing in residential permit activity--down 60% from December, which was the previous low month, and off 88.3% from January, 1990--was likely affected by the nationwide credit crunch as well.

Developers have been complaining for months that the near collapse of the thrift industry and an accompanying regulatory clampdown on commercial banks’ lending policies have dried up much of the money once available for acquiring land and financing construction projects. Without credit, the builders cannot build even if they perceive a renewed demand for homes.

Doti said the sharp drop in permit activity was not unexpected because supply outstripped demand for housing. But he thinks now that balance has been restored. And that means new housing prices have probably bottomed and will soon be heading up again.

According to the CIRB report for January, most of the new permits were issued for projects in the unincorporated areas of the county. The report doesn’t specify which communities are involved, but most activity in recent months has been in Rancho Santa Margarita and the hills behind El Toro. In all, builders were issued permits for 30 single-family and 12 multiple-family units in the unincorporated areas.

Laguna Niguel issued the largest number of single-family home permits of any of the county’s cities last month--13--while San Clemente issued the most permits for multiple-family units--16.

At least 14 of the county’s 29 cities issued no residential permits in January--no January data was available for Seal Beach, which issued permits for only 10 single-family homes in all of 1990.

The value of permits issued for new industrial projects totaled $1.4 million, down from $18.9 million in January, 1990, $3.8 million for new office development, down from $19 million for the same period a year ago, and $13.1 million for new retail projects, down from $22.1 million, also for the same period in 1990.

NEW HOUSING PERMITS

The number of permits issued in January for new housing units in Orange County dropped to what is believed to be the lowest level in 40 years.

June, ‘88: 4,041

Jan., ‘91: 129

Source: Construction Industry Research Board.