IRVINE – Buying a home in Southern California is within the reach of more families than at any time so far this century, according to the latest Housing Opportunity Index released today by the National Association of Home Builders.

Despite that positive trend, however, housing prices in California remain among the least affordable in the nation, leading the CEO of the Building Industry Association of Southern California to urge local and state governments to work with homebuilders to ease fees and regulations that continue to drive up costs.

“Between state laws that encourage lawsuits to block housing developments and local government fees and requirements that can add anywhere between $20,000 and $100,000 to the price of each new home, it’s always been difficult and expensive to build in Southern California,” said David W. Shepherd.

“In this market, every dollar counts and the competition with foreclosed homes and short sales remains fierce. We look forward to partnering with state and local governments to reduce fees, speed up processing times and craft other measures to make more projects pencil. That will create jobs, generate tax dollars and allow more families to buy today’s exciting new homes. ”

During the first quarter of 2012, 49.5 percent of the homes sold in Los Angeles County could be afforded by a family earning the county’s median income. That was up slightly from the previous quarter and up by more than 6 percentage points from the same period in 2011. In comparison, just 1.8 percent of the homes were affordable at the low point, set in the first quarter of 2006, and the county was the nation’s least affordable housing market.

Affordability also hit new highs for the century in the other metro areas in BIASC’s service territory, ranging from 83.7 percent in Imperial County to 50.7 percent in Orange County. (See table below for details.)

However, L.A. County was the fifth least-affordable metro area in the country during the quarter and Orange County ranked sixth-lowest. The two Southland metro areas joined San Francisco and San Diego in the bottom 10 among metro areas nationwide.

*Lowest – the lowest affordability ranking since 2000 or since data has been collected for that metro area.

**National rank counts from the bottom of the affordability list. The lower the number, the more unaffordable a metro area is nationwide.

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EDITOR’S NOTE: The NAHB/Wells Fargo Housing Opportunity Index is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

The NAHB/Wells Fargo HOI is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. Please visit www.nahb.org/hoi for tables, historic data and details.

The Building Industry Association of Southern California, Inc., is a non-profit trade association representing nearly 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. Along with its four chapters – Los Angeles/Ventura, Orange County, Riverside County and Baldy View – it advocates on behalf of the homebuilding industry throughout Los Angeles, Ventura, southeast Kern, Orange, Riverside, Imperial and San Bernardino counties. Visit its Website at www.biasc.org.

SACRAMENTO – Boosted by a major increase in apartment construction, statewide housing starts continued on an upward path during February and March, the California Building Industry Association reported today.

The statistics are the last building permit data to be compiled by the Construction Industry Research Board, which after more than 35 years in operation is being taken over this month by the California Homebuilding Foundation, a CBIA affiliate.

Statewide housing starts, as measured by permits issued, totaled 6,092 in March, up 73 percent from February and up 32 percent from March 2011. Single-family permits totaled 1,922 in March, up 26 percent from February and 5 percent more than March 2011. And multifamily permits shot up to 4,170 in March, more than double February’s total and up 50 percent from the same month a year ago. It was the largest monthly multifamily total since November 2002.

On a quarterly basis, single-family construction during the first three months of 2012 was 3 percent greater than the same period a year ago, multifamily permits were up 37 percent and total housing production climbed by almost 21 percent.

During the first quarter, single-family construction was highest in the Inland Empire counties of Riverside and San Bernardino; Los Angeles County; and the Sacramento region. By far the most multifamily production was in L.A. County, followed by San Diego and Orange counties.

CIRB projects that total production in 2012 will be 57,000 homes and apartments compared to the estimated 47,100 units built last year. That would still be the fourth-lowest annual production in the past 30 years and the second-lowest level in single-family construction.

Mike Winn, CBIA’s president and CEO, said the upward trend is encouraging but urged policy makers at the state and local level to continue working with homebuilders in order to spur economic growth and tax revenue.

“Homebuilding has to really get back on its feet before the state will see real economic growth, and with the number of foreclosures and other distressed sales still high, builders have to be able to compete on price,” Winn said.

“Unfortunately, high government fees and other costly restrictions often mean a project can’t get under way and will remain on the drawing board. State and local officials need to understand today’s market conditions and recognize that building more homes designed for today’s customers equals jobs, economic growth and increased revenue for government programs.”

Media contact: John Frith, BIASC. 949-553-9500, ext 125 | jfrith@biasc.org

CIRB data subscription contact: Terri Brunson, CHF. 916-340-3340 | tbrunson@mychf.org

May 7, 2012 - FOR IMMEDIATE RELEASE

SACRAMENTO – The California Homebuilding Foundation announced today that it has reached an agreement with the Building Industry Association of Southern California to take over the statewide construction permit data collection and reporting functions formerly performed by BIASC’s Construction Industry Research Board.

Reports for February and March will soon be released to subscribers and future monthly data will be compiled and published by CHF in a timely manner.

In making the announcement, CHF Executive Director Terri Brunson said it is essential that the data on residential and commercial construction continue being collected and disseminated to a wide range of subscribers, including government agencies, companies, researchers and the news media.

“CIRB houses data about construction trends that go back to 1954 and it is by far the most authoritative source of information about residential and commercial construction in California,” Brunson said. “Many organizations rely heavily on this information and we are excited that we can step in and take over its operations. We are also working on plans that will allow us to make the data even more useful to our subscribers in the future.”

The Research Board was formed in 1974 and has been operated by BIASC since 2007. Earlier this year, BIASC decided to spin off CIRB and discussed transferring its operations to a number of organizations before reaching an agreement with CHF.

“As a non-profit educational and research organization with close ties to our state-level affiliate, the California Building Industry Association, CHF is ideally positioned to continue and even improve upon the collection, analysis and reporting of building permit and public contract data,” said David W. Shepherd, BIASC’s Chief Executive Officer. “We know that CHF will do a great job and are pleased that we were able to keep this vital service alive within the BIA family.”   

The most widely used data collected by CIRB is California building permit information, which is collected monthly from more than 525 California cities and counties.  But CIRB also has been the only source of comprehensive data on private, nonresidential building permits since the Census Bureau stopped collecting such information in 1996.

CIRB’s Burbank office will close and CHF will operate the service from its office in Sacramento.

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The California Homebuilding Foundation (CHF) is the research and education center for California’s homebuilding and construction industries. Founded in 1978 through the California Building Industry Association (CBIA), the Foundation serves the industry by providing scholarships, funding research and conducting educational and professional development programs. The Foundation also is responsible for the Building Industry Hall of Fame. Learn more by visiting www.mychf.org.

The Building Industry Association of Southern California, Inc., is a non-profit trade association representing nearly 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. Along with its four chapters – Los Angeles/Ventura, Orange County, Riverside County and Baldy View – it advocates on behalf of the homebuilding industry throughout Los Angeles, Ventura, southeast Kern, Orange, Riverside, Imperial and San Bernardino counties. Visit its Website at www.biasc.org.

In making the announcement, BIASC President Bob Yoder said Shepherd brings a wide range of experience to the post.

"Dave has a strong commitment to our industry and possesses a rare combination of experience that we believe make him the ideal candidate to lead our Association in the years to come," said Yoder, who also is a Division President for Shea Homes.

“He understands our industry, has been a volunteer leader with the BIA and has an extensive background in government. These experiences will serve him well at BIASC and I look forward to working closely with him to help our region’s homebuilding industry continue to rebound from its worst crisis since World War II.”

Currently, Shepherd is Manager of Land Use Planning for Orange County, where he was responsible for planning for major developments as well as regional coordination with other jurisdictions.

Prior to that, he was a consultant for government agencies on development policy matters and Director of Forward Planning and Government Affairs for KB Home’s Coastal Division. While working for KB, he served in several leadership roles for the BIA, including Vice President for Public Affairs for BIASC’s Riverside County Chapter.

Earlier in his career, he directed intergovernmental and legislative affairs for the Riverside County Transportation Commission and San Bernardino Associated Governments and before that worked for two state legislators.

Shepherd said he was excited to return to the homebuilding industry.

“I look forward to working with our Board, staff, members, and regional and local governments to promote homebuilding, and assist Southern California’s economic recovery,” Shepherd noted.  “Building homes and apartments creates jobs, boosts the economy and provides cities and counties with much-needed revenues.”

He earned a master’s degree in public policy administration from Columbia University and a bachelor’s degree in political science and public service from the University of California, Davis. He and his wife, Karen, have three children – Riley, Kyle and Abbey – and live in Oceanside.

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BIASC is a non-profit trade association representing nearly 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. Along with its four chapters – Los Angeles/Ventura, Orange County, Riverside County and Baldy View – it advocates on behalf of the homebuilding industry throughout Los Angeles, Ventura, southeast Kern, Orange, Riverside, Imperial and San Bernardino counties.Visit our Website at www.biasc.org.

IRVINE – The new year brought in a mixed bag of housing production around Southern California, with three counties seeing sharp increases compared to January 2011 and three others reporting significant declines, the Building Industry Association of Southern California reported today.

But according to the Construction Industry Research Board, which compiles the monthly reports of building permit activity around the state, January often sees a sharp drop off from December’s numbers and doesn’t necessarily indicate how the rest of the year will go.

Across the six-county region from El Centro to Ventura (excluding San Diego County), a total of 840 building permits were issued by cities and counties in January, down 64 percent from December 2011 and down 16 percent from last January. The main reason for the decline from December was the sharp drop-off in apartment projects that got under way. Just 294 multifamily permits were pulled, compared to 1,676 the previous month.

On a county-by-county basis, increases were reported in Imperial, Riverside and Ventura counties, while Los Angeles, Orange and San Bernardino counties saw fewer permits issued.

Bob Yoder, this year’s BIASC president and a division president with Shea Homes, said builders are cautiously optimistic that the new-home market will improve slightly this year, but that production is still far below normal levels.

“Homebuilding must finally rebound in order for the state’s economy to begin accelerating out of the Great Recession,” Yoder said. “Builders are bringing innovative new floor plans to market that reflect what Southern Californians have told us they want in a new home, and competitive prices and interest rates mean these homes are more affordable than they have been in years. The BIA will continue working with policymakers across the region to help ensure we can provide the range of homes that area residents want.”

Demonstrating how volatile January was, the 134 permits issued in Imperial County was the third-highest monthly total there in the past four years, while Los Angeles and San Bernardino counties reported their third-lowest totals in the same timeframe. Just 239 permits were issued in L.A. County and only 60 were pulled in San Bernardino County.

On the other hand, the 222 permits in Riverside was more than the number pulled during six months last year and the 31 in Ventura County was better than reported in eight months in 2011.

Among area jurisdictions, Los Angeles ranked first with 112 permits issued, followed by El Centro with 73, Corona with 67, Irvine with 63 and Calexico with 52. Significant multi-family projects fueled the growth in the two Imperial County cities.

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Note to editors: in California, building permits are seldom pulled until construction is ready to begin due to the tens of thousands of dollars in development fees usually due when the permit is obtained. Unlike most other states, permits issued is a good indication of the number of homes on which construction began.

BIASC is a non-profit trade association representing nearly 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. Visit our Website at www.biasc.org.

The Construction Industry Research Board (CIRB) is a Burbank-based nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Website, www.cirbdata.com.

IRVINE – Mirroring statewide and national trends, single-family homebuilding fell to a post-World War II low in Southern California in 2011, but thanks to a big increase in apartment construction, the total number of housing starts in the region actually rose by 21 percent compared to 2010, the Building Industry Association of Southern California reported today.

However, total production regionwide was still extremely low, and BIASC President Bob Yoder said builders and local governments need to continue working together to encourage new housing, which economists believe must happen before the overall economy really begins to improve.

“Before this incredibly sharp downturn, statewide housing production had never fallen below 84,000 units a year. But 2011 was the third straight year in which production didn’t hit 50,000. In several counties we serve, there were more permits issued in one month in 2005 or 2006 than were issued all year in 2011,” said Yoder, who is also Southern California Division President for Shea Homes.

“Builders are seeing more interest from prospective buyers and we’re cautiously optimistic that 2012 will be a better year, but that can only happen if we keep new homes priced competitively with existing homes – and that can only happen if cities and counties around Southern California work with builders to reduce and defer building fees that in many cases add more than $50,000 to the cost of building a new home.”

He added that a jump in construction would reduce unemployment, spur economic growth and increase tax revenues for local jurisdictions.

According to preliminary data compiled by the Construction Industry Research Board,  housing starts as measured by building permits issued rose in four of the six counties covered by BIASC but continued to drop in Riverside and San Bernardino counties, which have been especially impacted by the foreclosure crisis.

The number of single-family permits issued rose in Orange and Imperial counties compared to 2010, while total permits increased in those two counties along with Los Angeles and Ventura counties. Overall production during the year was highest in Los Angeles County, which recorded 10,380 housing starts during 2011, followed by Orange County with 4,818.

Among jurisdictions, L.A. City reported the largest number of starts at 6,505, followed by Irvine, the unincorporated areas of L.A. County, the unincorporated areas of Riverside County and the city of Corona. Irvine saw the largest number of single-family homes built with 857, followed Riverside-unincorporated, L.A. City and the new city of Eastvale in Riverside County.

In December, production was up from November in all parts of the region except San Bernardino County. Single-family starts were down sharply from December 2010 across the region, but that was due in large part to the fact builders pulled a lot of extra permits that month to avoid higher-cost building code requirements that went into effect in January 2011.

Regional comments:

Carlos Rodriguez, CEO, Baldy View Chapter:

“The Baldy View Chapter is proud to report that all the cities in our service area that enacted fee decreases in 2011 (Highland, Ontario and San Bernardino) saw increases in permit activity from 2010 to 2011. We applaud these cities for taking a pro-business approach to working with the building industry to create new jobs and revenues for our local economy. While our region still faces some dire economic conditions, we believe that by working together with our local governments, the building industry can lead the economic recovery that our region desperately needs.”  

Bryan Starr, CEO, Orange County Chapter:

"Multi-family continues to be a major driver of housing production in Orange County.  Developers and investors are confident that great schools and safe communities coupled with modest improvements in unemployment will continue to make Orange County a desirable place to live."

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Note to editors: in California, building permits are seldom pulled until construction is ready to begin due to the tens of thousands of dollars in development fees usually due when the permit is obtained. Unlike most other states, permits issued is a good indication of the number of homes on which construction began.

BIASC is a non-profit trade association representing nearly 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California.

The Construction Industry Research Board (CIRB) is a Burbank-based nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Website, www.cirbdata.com.

Schuyler has more than 20 years’ experience in public policy and government relations. For the past decade, he has been the principal of The Strategy Centre, representing a variety of clients including land use and environmental concerns, with a special focus on CEQA mitigations. He also has been an advocate for the Western States Petroleum Association and earlier in his career held a variety of positions with elected officials including U.S. Representative Jay Kim, Orange County Supervisor Todd Spitzer and Assembly Member Fred Aguiar.

In making the announcement, BIASC President Bob Yoder said Schuyler’s background will provide the region’s homebuilding industry with a strong resource as it grapples with ever-more complex environmental and regulatory issues across the six-county region.

“Steven has a rare combination of political and technical competence to lead our efforts in these areas,” Yoder said. “He is a skilled negotiator who thoroughly understands the needs of our industry and of state and local government officials, and his understanding of environmental compliance issues will be particularly valuable.”

Schuyler earned a master’s degree in environmental studies-policy and planning, from California State University, Fullerton. He also holds a bachelor’s degree in political science from the University of La Verne. He lives in Chino Hills with his wife, Martha, and four-year-old son, Remington. 

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BIASC represents almost 1,000 member companies throughout Southern California. Along with its four chapters – Los Angeles/Ventura, Orange County, Riverside County and Baldy View – it advocates on behalf of the homebuilding industry throughout Los Angeles, Ventura, southeast Kern, Orange, Riverside, Imperial and San Bernardino counties.

IRVINE – The Building Industry Association of Southern California, Inc. (BIASC), which represents more than 1,000 member businesses involved in the homebuilding industry, today announced the appointment of Mark Knorringa as its new Chief Executive Officer.

Knorringa, 61, has worked in the industry for more than 35 years as a builder, developer and association executive. Most recently, he has been the Executive Officer of the Riverside County Chapter since 2008 and was named BIASC’s Executive Officer of Year in 2010.

“Strong leadership and member involvement are critical as BIASC continues to fight for homeownership and the professionals that work hard every day to deliver the American Dream,” said Bob Yoder, President of the Southern California Division of Shea Homes and this year’s BIASC President.

“Mark has a unique perspective given his breadth of experience in Southern California. He understands the business and the impacts that legislation and regulations have on members, and he has the organizational skills we need to continue providing members with valuable programs and services.”

Knorringa succeeds Holly Schroeder, who served as BIASC’s interim CEO since January but preferred to continue serving as the Executive Officer of its Los Angeles/Ventura Chapter.

“Holly deftly managed the restructuring of the Association’s dues, governance and budgeting process, and we are grateful for all that she has accomplished during what has been a very challenging time for our industry,” Yoder said.

Knorringa is a longtime leader in Southern California's homebuilding and community development industry. His real estate expertise includes oversight of large-scale master-planned community infrastructure installation; entitlements; and the development of several all-suite hotel projects and residential subdivisions.

“I’m honored to have been asked to take on this new challenge, especially during these unprecedented economic times,” Knorringa said. “For many years, the BIA has forged great alliances with local government and community leaders. Holly Schroeder has achieved great results, and I’m committed to working with our members and staff to sustain our momentum. I look forward to furthering relationships and achieving tremendous results on behalf of the men and women of the building industry and most importantly for the economic benefit of our region.”

Before becoming the Riverside County Chapter’s Executive Officer, Knorringa was a long-time BIA volunteer, serving for two terms as the Chapter’s President as well as Vice President of Governmental Affairs for BIASC. Prior to becoming the Chapter Executive Officer, Knorringa was Director of Development for Oak Valley Partners. In that capacity, he managed all phases of the Oak Valley master-planned community in Beaumont and Calimesa, including entitlements, annexations, environmental review, development and construction.

He lives in Corona del Mar with his wife, Katchen.

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BIASC and its four chapters – Los Angeles/Ventura, Orange County, Riverside County and Baldy View – represent the homebuilding industry throughout Los Angeles, Ventura, southeast Kern, Orange, Riverside, Imperial and San Bernardino counties.

SACRAMENTO – California housing production rose sharply in May and posted the highest monthly permit total for the year on the strength of the multifamily sector, the California Building Industry Association announced today.

According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 4,630 total housing units in May, up 42 percent from the same month a year ago and up 28 percent from April. Permits for single-family homes totaled 1,908, down 7 percent from May 2010 and down 6 percent from the previous month, while multifamily permits totaled 2,722, up 124 percent from a year ago and up 71 percent from April.

For the first five months of the year, permits were pulled for 18,120 total units, up 6 percent when compared to the first five months of 2010 when 17,050 permits were issued. Permits for single-family homes were down 17 percent while permits for multifamily units were up 45 percent.

Mike Winn, CBIA’s President and CEO, said this was welcomed news and took note of the high number of permits issued during the month.

“Other than December of 2010, this is the highest monthly total since December of 2008 when 4,658 permits were issued,” said Winn. “This is also the first time in 2011 that year-to-date figures have surpassed last year’s numbers over the same period, so it’s a refreshing change and we hope to see further increases.”

Winn noted that CIRB is now forecasting a total of 51,400 permits will be issued in 2011, up from 2010’s total of 44,762 permits, but still down from 2008’s total of 64,962.

“While it seems we had a great month in May, these gains are largely attributed to the multifamily sector,” said Winn. “The construction industry as a whole is still struggling, and we must continue to encourage our lawmakers to ‘do no harm’ as the industry continues to recover.”

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The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association's Web site, www.cbia.org.

The Construction Industry Research Board (CIRB) is a nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Web site, www.cirbdata.com.