The great SoCal slowdown: Homebuilding drops 18%

Amid nationwide housing market decline, SoCal developers tapped the brakes on construction but were still left with a big supply of unsold properties

May.May 23, 2019 09:00 AM
Andy Reid, the President of MetroStudy
Andy Reid, the President of MetroStudy

Construction in Southern California has dropped 18 percent amid the largest supply of unsold homes in seven years.

In the first quarter, developers in the region had 8,829 residential units under construction, down by 1,950 compared to the same time last year, according to data from MetroStudy, as reported by the OC County Register. That’s the slowest rate since 2016, adding to the slowdown in the greater housing market.

The new data showed a surge of 3,750 newly finished homes that went unsold in Los Angeles, Orange, San Bernardino and Riverside counties, the Register reported. That amounts to 688 more units on the market, marking a 22-percent jump compared to last year.

L.A. County alone had 935 finished unsold homes, up 5 percent from last year. L.A. now has 4,231 units under construction, down 2 percent since 2018. New-home sales for the quarter also fell by 32 percent, to 615 units.

The larger signs of trouble were in Orange County and Inland Empire, where finished homes for sale are up 32 percent and 29 percent since last year.

Home builders started slashing prices across the nation months ago, due to surging inventory and plummeting sales. Home price gains have also been slowing as a result in Southern California. [OC Register]Gregory Cornfield

Related Articles

Home bidding wars cool a bit nationwide (Credit: iStock)

Fewer LA buyers willing to pay above ask these days

The median sales price inched up less than one percent last quarter to $1.51 million from $1.5 million a year prior (Credit: iStock)

In wealthy Los Angeles, home sales are up. But prices aren’t

A 24,000-square-foot home in Beverly Hills Post Office

Luxury market rebounds in some LA submarkets, while median home sales hit record

Los Angeles homes (Credit: iStock)

SoCal home-buying saw most active July in 4 years amid falling mortgage rates

Scott Laurie, chief executive of Olson Co. and Christopher Thornberg, founding partner of Beacon Economics

How slow can you go? Statewide homebuilders tap brakes on new projects amid rising costs

CoreLogic analyst Andrew LePage

LA home sale prices just set another record high

John Burns (Credit: iStock)

As mortgage rates fall, 250K more SoCal households can afford starter homes

Southland Regional Association of Realtors President Dan Tresierras and the San Fernando Valley (Credit: Wikipedia)

San Fernando Valley might be selling homes slowly, but prices just won’t stop rising