Recently, I wrote about how apartment rents are on the rise in the Orange County and Beach Areas and that experts are projecting this to be the case for the next 5 years or so. Reports are coming out now that new home construction is up exponentially from last year, which is true; however, as you will see that report on its surface can be a little misleading.
New home permits in Orange County are up 73.7% from the same period last year. That's 3,901 housing units...at a value of $694 million dollars, which is 38.3% higher that the same period of time in 2010.
Specifically, these are the areas of the most intriguing figures, particularly the first area:
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Multi-family housing (apartments and multi-story condos) makes up most of the permits. Permits were issued for twice as many multi-family units this year so far than last year at this point. Single-family permits increased 35.7%.
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Orange County and local cities issued 1,436 building permits this year so far for detached and attached single-family houses. That's an increase from last year, but it's still 61% below the average for the past 24 years.
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The dollar value of home remodeling projects was higher ($224 million) as of August than past 2 years. That’s still below 2008 levels, when permits were issued for $253.7 million in home remodeling jobs.
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Building permits were issued for 64 new single-family homes in August, compared to 153 at the same point in 2010.
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Local governments issued permits for 2,465 multi-family units this year so far. That's a 107.5% increase from last year, but 15% below the 24-year average.
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Local governments issued 377 multi-family permits in August, compared to 682 in August of last year.
Basically, we're seeing a lot of permits for what will be rental properties in the Beach Areas. Watch for the rental prices to go up with this “demand,” and keep this in mind when you see news about real estate “recovery.” Recovery will eventually happen, but we have a long road ahead.
Just be careful with your money, research your real estate decision and work with a real estate professional who truly is listening to you and helping you find the home that will make you happy.
Click here to read the whole article in the OC Register: http://lansner.ocregister.com/2011/09/27/apartments-push-o-c-homebuilding-up-74/125063/
As always, for more help and hints, just call me...your Beach Areas Specialist at 562-244-8021, visit my webpage www.annopoly.com or visit me on Facebook.
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