CALIFORNIA BUSINESS MINUTE
New Housing
08-17-10
Hi, I am Tim Johnson and welcome to the California Business Minute
A new study identifies the staggering decline in the economic impacts from
new housing construction in the state. Since 2005, nearly 80 percent of
its economic impact has been lost dropping from $67.7 billion in 2005 to
$13.8 billion in 2009. Employment declined by 84 percent from 487,000 jobs
in 2005 to only 77,000 jobs last year.
The report was released by the California Homebuilding Foundation and the
Center for Strategic Economic Research in Sacramento.
New housing construction is a key sector of the state's economy, accounting
for about 0.4% of California's output and ranking among the top 15 percent
of all industries. The larger housing industry, including remodeling, repair,
brokerage, property management and financing, accounts for about 11 percent
of all economic activity in California, according to the report. That
translates into about $350 billion of output and about 1 million jobs.
"The downturn in building activity has also generated a considerable decline
in all of the sectors that supply goods and services to the construction
industry as well as those that benefit from workers spending their wages,"
said Ryan Sharp, director of the Center for Strategic Economic Research.
I am Tim Johnson and this has been the California Business Minute.
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