Housing production continued to decline in September, when 4,364 permits were pulled throughout California, down 32 percent compared with the same month a year ago and down 6 percent from August, according to statistics compiled by the Construction Industry Research Board.

Single-family permits totaled 2,326, down 35 percent from September 2007 but up 4 percent from August. Multifamily permits totaled 2,038, down 29 percent when compared with September 2007 and down 14 percent from the previous month.

“We are not surprised, but disheartened by the building permit statistics for the first nine months of the year,” said CBIA Chief Economist Alan Nevin. “Compared to the first nine months of 2007, single-family permits have declined by more than 50 percent and can be anticipated to end the year with under 40,000 units, a modern low for the state.

“In total, for the year 2008, we project that permits will decline to a low of fewer than 70,000 and see little change in the velocity of  ’for sale’ construction as foreclosure resales continue to create a situation where the cost of building a new home is far higher than the prices of the resale market.”