Building Permit Rise Seen as 1st Wave to ’92 Growth

Prompted by an increase in multi-family permit activity, state housing production rallied in September as building permits climbed 5.8% from August.

September’s annual permit rate--the first positive movement since June--was 108,300 as measured in new unit building permits, according to the California Building Industry Assn. (CBIA).

With the multi-family sector leading the way with a September increase of 11.7% from August, single-family permits also nudged to the plus side of the ledger with a hike of 3.4% in comparison to August’s rate. The 108,300 annual rate broke down to 75,800 single-family permits and 32,500 multi-family permit units.

Merced, in the San Joaquin Valley, led the multi-family surge with a jump of 51% in September.

While the residential construction sectors showed gains in September, both annual rates were down from the 1990 ninth-month totals.

“While this production increase is not a major gain, the positive September movement should be the first wave leading to future construction growth in 1992,” said CBIA Chief Executive Officer Robert Rivinius. “The industry expects a modest year of increased production, with about 150,000 residential units in 1992.”