Construction Down by 55%
The recession’s impact on Ventura County home sales and on the construction industry is underscored by two newly issued reports.
All building activity in the county was down more than 50% during August, while sales of new homes fell 21% in the quarter ended Sept. 30, the studies show.
In both month-to-month and year-to-year comparisons, construction was off 55%, according to the Construction Industry Research Board, a trade group. Permits of all kinds totaled $30 million in August, compared to $66.7 million in July and $66.6 million in August, 1991, the group said.
Almost all major construction categories suffered setbacks during August. In fact, one activity, multifamily building--including apartments and duplexes--came to a dead halt, with no new permits granted during the month. In contrast, 75 multifamily units were launched in July, and 52 were begun in August, 1991.
Builders obtained permits for only 54 new single-family homes in the county during August, compared to 97 in July and 93 in August, 1991.
The value of permits for new office and other commercial buildings sank to $831,000 in August, from $22.1 million in July and $15.5 million in August, 1991. July was an unusually busy month for commercial building permits; no other month in 1992 had exceeded $3.5 million.
One of the few encouraging notes was provided by new non-residential alterations and additions. Permits in that category totaled $9 million in August, up from $7.3 million in July and also higher than the $5.9 million of August, 1991.
Another study, the Competitive Housing Market Report published by the Meyers Group, a Newport Beach-based marketing research and consulting firm, said only 244 new homes were sold in Ventura County during the third quarter. That was 21% below 309 sales in the second quarter but up 7% from 228 sales in last year’s already depressed third quarter.
The condominium market in the county is especially soft, the report said, but demand for single-family homes priced at less than $300,000 “remains strong.”
Steve Smiley, manager of Meyers’ Encino office, said Ventura County is attractive to “first and second move-up buyers from all over the Los Angeles Basin,” but noted that increased joblessness has dealt a blow to the so-called commuter market.
