Building Industry Blues

President Bush’s State of the Union address spotlighted something that local builders--a group including many of the nation’s biggest construction and development firms--have been saying for years: Home-building is a key part of the economy.

While the national recession began in the third quarter of 1990, the local economy has been sluggish for a lot longer because of the decline in building activity.

It began slowly in 1987 but had become a veritable free fall by the end of 1991, as these statistics from the Construction Industry Research Board in Burbank show all too clearly.

The worst year in a decade for all types of county building was 1991. Particularly hard hit was residential construction: The number of units for which permits were issued was down 73.8% from 1986.

Residential Permits

The total number of multi- and single-family housing units for which permits were issued in Orange County has declined every year since 1986.

Commercial Permits

Non-residential construction has not fared much better, with the value of permits for new projects in 1991 down 51% from 1986.

Industrial (In dollars) 1991: 39,252

Offices (In dollars) 1991: 124,385

Retail (In dollars) 1991: 119,130

Source: Construction Industry Research Board