DQNews Archived Article

California Building Surge

by Real Estate Analyst John Karevoll
June, 1999

La Jolla, CA.— Building activity in California reached its highest level since 1990 during the first five months of the year, a real estate information service reported.

Construction financing totaled $7.86 billion for the January-to-May period, up 13.7 percent from $6.91 billion for the same period last year, according to DataQuick Products Division.

This year's financing total was the highest since $10.18 billion was spent on building projects during the January-to-May 1990 period. The bottom was reached in 1993 when construction projects got $2.25 billion in financing.

"Builders and their financing partners are not throwing themselves into projects the way they used to when economic times were good. A lot of planning is being done and everyone is cautious. We expect the moderate growth in the building sector to continue," said Mike Ela, leader of DataQuick Products Division.

The Bay Area is seeing the strongest surge of building activity in California, while the Central Valley and rural regions are seeing little or no growth (see chart). Orange County's construction activity dipped slightly as building in neighboring Riverside County jumped.

DataQuick monitors all real estate activity in California and other states and provides information to consumers, lending institutions, title companies and industry analysts. The numbers include all construction loans, commercial as well as residential. A construction loan is typically recorded a few days before building activity actually begins.

Construction financing ($Mill.)

January to May

County	1998	2000	Percent
			Change
Los Angeles	1,311	1,407	7.30%
Orange County	782	662	-15.30%
San Diego	821	934	13.70%
Riverside	465	721	55.20%
San Bernardino	266	327	22.90%
Ventura	180	238	31.60%
So.Calif. Total	3,826	4,289	12.10%
San Francisco	195	256	31.80%
Alameda	306	337	10.10%
Contra Costa	183	151	-17.30%
Santa Clara	497	623	25.30%
San Mateo	185	193	4.30%
Marin	65	42	-34.70%
Solano	50	51	3.20%
Sonoma	76	170	122.90%
Napa	41	96	132.10%
Bay Area Total	1,598	1,921	20.20%
Santa Cruz	76	68	-11.10%
Santa Barbara	41	95	133.70%
San Luis Obispo	74	108	46.30%
Monterey	49	124	152.00%
Coast Total	240	395	64.50%
Sacramento	273	222	-18.60%
San Joaquin	141	230	62.90%
Placer	143	84	-41.40%
Kern	117	111	-4.50%
Fresno	96	90	-6.50%
Madera	8	16	106.50%
Merced	22	24	9.40%
Tulare	25	42	64.60%
Yolo	36	62	71.60%
El Dorado	33	42	28.30%
Stanislaus	88	124	40.50%
Inland Total	1,005	1,047	4.20%
Other/Rural	240	207	-13.80%
All California	6,909	7,858	13.70%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1999 DataQuick Information Systems.
All rights reserved.

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