Rancon Group officials are cautiously optimistic about the future of residential development in Southwest County after several year-end reports signal positive changes in the market and economy.
In a December 22 report the California Building Industry Association (CBIA) issued a report stating that housing production in the state rose for the fourth consecutive month. The total number of construction permits rose 21 percent over the previous November and a whopping 52 percent from the previous month (October 2011).
“As we move into the New Year, hopefully this trend of increased production will continue and is a sign of better times to come in 2012,” said Dan Stephenson, Chairman and Founder of the Rancon Group.
According to CBIA, multi-family permits are leading the trend with a 33 percent year-over-year increase in November and a jump of 123 percent since October.
“There are indications that the economy as a whole is improving in California and especially here in Southwest Riverside County,” said Jeff Comerchero, Rancon Group CEO. “Jobs are being created and the attitude in the business community is that a recovery is just around the corner.”
In a recently released report from the California Employment Development Department (EDD), unemployment rates in both San Diego and Riverside counties fell in November. Riverside County’s unemployment rate dropped nearly 1 percent (0.9%) in just one month, the largest single month drop since December of 1998.
According to the EDD, the City of Murrieta had an estimated jobless rate of 8.5 percent, while neighboring Temecula came in at 8.7 percent in November. The numbers indicate a decrease of 0.6 percent and 0.4 percent respectively compared to October.
California’s employment rate continues to fall as well. The EDD pegged the jobless rate at 11.3 percent in November, which is down from 11.7 percent in October.
“Our belief in California, and especially this area of Southern California, has never wavered through this economic downturn, or any of the previous recessions,” said Stephenson. “We live and do business in one of the best places in the entire world. The market and the economy will come back, and when it does, we will be ready.”