Building Permits Continue to Drop During October

Building permits in Orange County, an indicator of construction activity over the coming months, continued to decline in October, the Construction Industry Research Board said Wednesday.

There were 373 single-family permits issued in October, down from 433 the previous month and 586 in October, 1989. For the first 10 months of the year, single-family housing permits fell 51% to 3,345 from 6,830 last year.

Permits for multifamily housing--apartments, townhouses and condominiums--fell slightly to 659. In September 668 multifamily permits were issued, and in October a year ago 720. But multifamily permits issued by local governments in the first 10 months of the year were up 8% compared to last year, from 7,193 units to 7,795.

The number of permits issued for single-family homes has dropped for the past nine months compared to the same period in 1989. Construction activity has fallen off as home sales have slumped and builders have had difficulty obtaining financing.

Even new homes on the market, which are generally priced higher than used homes, are selling at deep discounts. And builders say it’s mostly first-time buyers searching for less-expensive housing who are in the market now.

Total residential permits issued in October were 1,032, down from 1,101 in September and from 1,306 a year ago. The value of those permits was $120.5 million, down from $128.9 million the previous months and from $164.2 million in October, 1989.

For the January to October period, total residential permits fell from 14,023 in 1989 to 11,140 this year. The value of those permits fell from $1.81 billion in 1989 to 1.28 billion in the first 10 months of this year.

Permits for new office buildings also fell steeply, a result of banks making fewer real estate loans and a large supply of unleased office space on the market. Local governments issued permits for $193.9 million worth of office construction through October, contrasted with $305.3 million last year.

Factory and warehouse permits were also down, the board reported, falling to $63.4 million from $115 million last year.

In commercial buildings, only permits for new stores rose during the year, to $182.3 million from $155.8 million last year.

Value of Building Permits The value of permits issued in the first 10 months of 1990 has dropped substantially for all types of construction except retail space in comparison to the same period in prior years. Residential In billions of dollars 1986: $1.4 1987: $1.7 1988: $2.1 1989: $1.8 1990: $1.3 (Each year from Jan. to Oct.) Office In millions of dollars 1986: $430 1987: $342 1988: $398 1989: $305 1990: $194 (Each year from Jan. to Oct.) Industrial In millions of dollars 1986: $169 1987: $141 1988: $113 1989: $115 1990: $63 (Each year from Jan. to Oct.) Retail In millions of dollars 1986: $195 1987: $218 1988: $239 1989: $156 1990: $182 (Each year from Jan. to Oct.) Source: Construction Industry Research Board