Currently Reading

California Builders Position Themselves as Part of Drought Solution

Advertisement

California Builders Position Themselves as Part of Drought Solution

Several builders argue that a moratorium on new construction will result in more harm than good


April 27, 2015
Several builders argue that a moratorium on new construction will result in more harm than good
Several builders argue that a moratorium on new construction will result in more harm than good

Builders in California vie for a voice about one of the worst droughts in the state’s history, The Wall Street Journal reports.

According to several builders, a moratorium on new construction will result in more harm than good. “You’re not going to conserve the water that you’d hope to. And the downside that you’d bring for the economy outweighs any gains,” President and Chief Executive of the California Building Industry Association David Cogdill said.

Fifty-one percent of economists surveyed by the Wall Street Journal this month said the effect of the water-cut mandate on the economy will be too small to show up in data, while another 44 percent predicted the impact would be measurable, but small.

Senior analyst at housing research and consulting firm John Burns Real Estate Consulting Alex Martinez found “no attributable impact” of previous droughts on home building activity. But the current drought has no recorded precedent.

“Since we are entering uncharted territory, I fear that we will see more moratoriums placed on new-home construction,” Martinez told The Wall Street Journal.

Read more

Tags

Related Stories

Economics

Lessons Learned From a Decade of Home-Price Inflation

Years of endless supply constraints are leaving their mark on the U.S. economy, and the housing market is taking the biggest hit

Affordability

Mortgage Rates Will Likely Keep Rising, but Just How High Will They Go?

Economists are gritting their teeth and bracing for higher mortgage rates ahead, but when will the increases end?

Market Data + Trends

A Real Estate Bubble Could Spell Trouble for the Housing Market, but Is It a Likely Scenario?

The most recent increase in the 30-year fixed-rate mortgage has some experts fearful of a possible housing bubble. Here’s what that could mean for homebuyers

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.