California Business Minute™

The California Redevelopment Association, CRA provides legislative
advocacy, professional development and public education.  In support
of its members it responds to legislative proposals and administrative
regulations.

For further information, contact us www.calredevelop.org or at 916-448-8760

Hi, I am Tim Johnson and welcome to the California Business Minute.

The California Homebuilding Foundation (CHF), in conjunction with the Sacramento
Regional Research Institute (SRRI) released the "The Economic Benefits of Housing"
a report which details the role new housing and the housing industry plays in the economic
health of California.

The report found that new housing construction in California contributed nearly $40 billion
dollars to the California economy in 2007, totaled more than 1 percent of the state's output
and supported over 266,000 jobs. However, a previous study determined that homebuilding
generates approximately $60 billion a year to the California economy and creates an
estimated 526,000 jobs statewide.

But this report illustrates that just in two years, from 2005 to 2007; the industry was down
more than 221,000 jobs and $28 billion in economic benefit.

"The declines are staggering," said Ryan Sharp, Director of the Sacramento Regional Research
Institute. "The homebuilding industry has been an engine for the California economy for years,
but the year over year declines in job losses and decreases in economic output illustrate the far
reaching effects of the current housing market crisis. Some of the hardest hit areas include
Southern California's Inland Empire where the output totals and employment impacts fell nearly
50 percent from 2006 to 2007."

I am Tim Johnson and this has been the California Business Minute.

The full report can be found on the California Homebuilding Foundation website at www.mychf.org