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

Los Angeles /
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

arrow_forward_ios
The L.A. County median of $790,000 was 23 percent higher than last June (Getty)
SoCal home prices reach yet another record high in June
SoCal home prices reach yet another record high in June
(iStock)
LA County signed contracts tick down — slightly — in June
LA County signed contracts tick down — slightly — in June
Prices may be pushed up by a lack of inventory (Getty)
SoCal home prices hit another record high in May
SoCal home prices hit another record high in May
Home sales remain strong in Los Angeles County as over 5,500 properties went into contract last month. Inventory, however, is still lagging behind. (iStock)
Another 5.5K LA homes went into contract in May
Another 5.5K LA homes went into contract in May
(iStock)
SoCal home sales kept rising in April
SoCal home sales kept rising in April
L.A. County signed contract totals stayed strong in April, but new listings couldn't keep up. (Getty)
LA’s signed contracts in April dwarf new listings
LA’s signed contracts in April dwarf new listings
Fewer homes are selling across Southern California, but low supply helped push pricing up across the region.
Far fewer SoCal homes traded in April, but prices rose
Far fewer SoCal homes traded in April, but prices rose
Home bidding wars cool a bit nationwide (Credit: iStock)
Fewer LA buyers willing to pay above ask these days
Fewer LA buyers willing to pay above ask these days
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...