Thursday, December 11, 2014

Construction boom in California again – Swedish newspaper Svenska Dagbladet

Construction boom in California again – Swedish newspaper Svenska Dagbladet

The population explosion in Greater rolls on with daily net 100 people more accommodation in Stockholm county, or another 37 000 inhabitants according to the forecast for 2014. But for the first time since 2007, is now the growth rate of housing starts almost in line with population growth. Approximately 15,000 starts of new homes in 2014, the highest number since the years before the financial crisis.

– We see a particularly rapid increase in the neighboring municipalities in Stockholm County, where housing starts have increased by 85 percent compared to a year then. These municipalities outside of Stockholm city now accounts for two-thirds of all homes that begins in the county, says Hans-Åke Palmgren, housing analyst at the National Housing Board.

It is not Stockholm city which attracts the heaviest load anymore. Statistics show a total scene switching, Building and Planning expects that the production rate rises further, to 15,500 housing starts in 2015. Thus speaks at the National Housing Board for the first time since the financial crisis on the conditions for long-term balance between the contributions of housing and population increase.

According to the National Housing Board needs to California each year 16,000 more housing units, a level which however is slightly higher, 18 000, the Regional Planning Office.

– But now it is not unreasonable to reaching the levels needed, says Hans -Åke Palmgren.

construction company Skanska confirming the Board’s image. Alexandra Laurén, Regional Manager at Skanska, notes that the rate of construction, as measured by housing starts increased by 90 percent in Greater Stockholm last year, and that the increase has continued with 17 percent in January-September this year, a trend that looks set to continue.

– Skanska plans to build even more new homes in 2015 than this year, says Alexandra Lauren who notes that as sales of condominiums in new projects is increasing.

It is clear that the still is the tenant who runs most of the construction boom. According to the National Housing Board stood rental units by mid-2014 to 32 per cent of the total number of housing starts in California, thus including new homes and renovations.

The percentage of rental units is increasing, not least because it involves almost completely halted production of student apartments has started again. But still represent condominiums 60 percent of all dwellings in apartment buildings begins.

Skanska’s analysis is that the price development of condominiums continue to rise, albeit at a slower pace than in recent years. At current prices per square meter sees thus profitability for large investments even in suburbs outside the city of Stockholm, for example Järvastaden currently being built between Solna and Sundbyberg.

– The availability of land control production to neighboring municipalities, says Alexandra Lauren highlights the increase in the number of housing starts will depend on the rate at which detailed plans can be driven in.

At the National Housing Board notes Hans-Åke Palmgren that new construction in Greater replied decently well against population growth until 2005. But since then, immigration has risen to very high level, this while the number of starts of new homes fell to a low of just under 6000 annualized after the financial crisis.

The difficult equation with very strong population growth and – until the last year – far too low building, has been in the autumn attracted the attention of the Stockholm Chamber of Commerce carried a report from consultancy WSP suggesting that Stockholm not only can solve the needs through more new condominiums and private homes. Advocating some form of “social housing”, that is a new housing for the urban poor households, not least as overcrowding has increased significantly especially in immigrant suburbs.

The study notes that Stockholm County in 2003 -2013 had a population growth to average 1.5 per cent annually, something that can only be compared with Stockholm in the 1950s and 60s, when the increase averaged 1.6 percent.

– The population growth is driven by immigration and high birth rates means that most people who are moving into has limited financial resources. If you have an inaccurate picture of how population growth looks can also draw the wrong conclusions as to what action to take, says Tore Englén, an analyst at consultancy WSP to the newspaper today’s society.

The number of started new homes next year, reaching 15,500 in the county means that we are now moving towards the same levels as in the 1970s. 1975 completed 15,400 new homes in California, this for a population that is growing by the year 4400 inhabitants. This year’s increase in population almost ten times larger than then.

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