The Builders Index Or Housing Starts was down 1.09M in March vs. 1.17M expected

U.S. housing starts fell more than expected in March. The housing permits applications are also at a year low. This is a US number and not an Antelope Valley number, but is shows a slowing in housing being built. This may be different in the Antelope Valley for the future due to the new Stealth Bomber building plans at Northrop Grumman’s Plant 42. This does show a slow done in the first quarter housing starts for the first half of 2016 nationwide. The overall groundbreaking decreased 8.8 percent to a seasonally adjusted annual pace of 1.09 million units. This is the lowest level since October according to the Commerce Department. Although, last months housing starts were revised up, but only slightly from 1.19 million from 1.18 million. The largest segment of the housing market is the single family and that dropped almost 10 percent or 9.2 percent. This is the lowest national number since last fall. Again this is a national number and maybe different in Los Angeles County, but it is a reflection of the new housing market for 2016

Antelope Valley is the Silicon Sky

This is a reprint of an article from the AVPress by Jim Keen After suffering more than its fair share of down time, the Antelope Valley is on the upswing and the outlook for its leading industry, aerospace, is bright. In an essay titled "The Unfolding of Silicon Sky," economist Christopher Thornberg notes the Antelope Valley suffered through hard times in the 1990s from defense cutbacks and was hit hard than most areas in the housing market bust of the Great Recession. "The good news is that the Antelope Valley is on an upward swing and clearly recovering from the recession," Thornberg wrote in the essay, which appears in the 2016 Economic Roundtable Report produced by the Greater Antelope Valley Economic Alliance, or GAVEA. Thornberg is the founder of Beacon Economics and has been a frequent visitor to the Antelope Valley. Thornberg says signs of that upswing include home prices that are increasing at a 9% pace, falling unemployment, taxable sales growing at a healthy 5% rate, population growth holding steady at just under 1%, and overall job growth being at just above 2%. "While new construction remains subdued locally, growing unaffordability in the core areas of Los Angeles will undoubtedly create a new surge in local demand over the next few years," Thornberg wrote. The biggest bright spot is aerospace. "This isn't your father's aerospace industry, back when gutsy test pilots and bigger jet engines defined the industry," Thornberg wrote. "Today, it is all about material sciences and advanced computer technology." Thornberg notes some of the industry's recent milestones, including billionaire Paul Allen opting to build a giant airplane in Mojave to launch satellites into space, Northrop Grumman winning the contract to develop America's next bomber, and activity by the Air Force and the Navy in redesigning major weapon systems in the region. "All of these efforts require massive R&D activity and extensive high-tech supply chains - bringing in a new wave of suppliers and sub-contractors. These will be high-tech firms with highly skilled employees and represent an opportunity for the area to become a high-tech hub," Thornberg wrote. The key for the region is to make it as easy as possible for these companies and workers to come to the Antelope Valley, Thornberg said. The region will also need to make sure the area is a place where tech workers would want to live by improving education, expanding entertainment and retail options, and making space for high-end housing, Thornberg said.

New Positive Jobs News on the Antelope Valley Horizon

Northrop Grumman was awarded the “B3” new stealth bomber contract, but it is under appeal by Lockheed and Boeing. Lockheed also has a presence in Palmdale, if there is any change maybe Lockheed will get some input. The entire bidding process takes time, so it looks like Northrup will get the bid unless there was any illegal backdoor deals. But there is no evidence of that. Additionally, BYD is building electric buses and expanding their footprint in other cities and States. Also Kinkishiryo which is also in Palmdale has been building some rail cars for the Metro Rapid Transit system. They were going to pull out of Palmdale at one point, but tempers and accusations cooled. There are several solar power facilities taking place on the west side. These projects are being built and jobs are operating. Once the conduction faze is complete then many of those construction jobs will be gone. But it seems as soon as a project is completed then another one gets started. The sun keeps shining on solar in Lancaster and LA County land. More engineering jobs like these especially the new stealth bomber and the bus and train construction and manufacturing creates a need for housing in ownership and rentals. This all increases the value of land over time. This is all positive news for real estate and land investment.

Northrop Grumman’s New Bomber Gets Budget Approval, Good News for Palmdale

The Air Force said indicated it chose Northrop Grumman Corp., maker of the B-2 stealth bomber which was previously built in Palmdale Ca. Now Northrop Grumman will to build the next-generation bomber, which is highly classified. The cost is projected to be $80 billion to replace the aging bomber fleet. It may also be able to fly without a pilot aboard. It is a bid announcement for the Pentagon as they are planning to modernize their nuclear force, submarines, and long range bombers which is dubbed the B-3. The total budget is $348 billion over 10 years and other says it will be $1 Trillion in 30 years. Previously, Northrop Grumman said it could create 1,500 new jobs in Palmdale under the bomber contract. These new jobs should move the needle in the Palmdale housing market as new high tech engineers will be needed for this project as well as hundreds of admin support staff.

New Stealth Bomber Could Jump the Palmdale and Lancaster Economy Spring 2015

News reports indicate a big Pentagon Project which could be awarded to Palmdale, Ca. Northrop Grumman. They are bidding to make the New Stealth Bomber. Each plane could cost $550 million or more to make. Grumman already has a facility building the earlier bomber at Plant 42. Grumman and Palmdale, Ca. are in competition with Boeing on the project. This means more jobs for Antelope Valley. News reports also indicate that Sacramento legislators have passed bills to provide tax breaks for Lockheed and Grumman last summer in hopes on getting the deal. LA Times quotes Palmdale Ca. Mayor "They've indicated that they can’t talk about it but he can," Mayor James Ledford said the prospects look good. Northrop executives have said they would build substantial parts of the company's proposed bomber in Palmdale, he said, creating an estimated 1,500 jobs. Rival Lockheed Martin Corp. who is a subcontractor to Boeing Co. indicated it also plans to work on a new warplane in Palmdale, Mayor Ledford said. That means more jobs. Military officials say they want the plant to be built for $550 million each, and not the $1 Billion a plane as in the past. Sources indicate their budget is $1.2 Billion per plane, and they want to build 100 new planes starting this spring. Both Grumman and Lockheed have a track record of going over budget. Antelope Valley has a long history with high tech planes. The B-2 was built here, as well as the first Stealth Bomber, U-2 spy plane, and the F-117 stealth fighter. There has been a lot of jobs in Palmdale and LA County from aerospace through the decades of the Cold War. Even today Virgin Galactic tests their space rocket just north in Kern County at Edwards Air force Base. Winning this project will certainly help the local economy and these engineers will have to buy a home and later invest in their community.

AV Solar Ranch One Project gets Unanimous Approval against Northrop Grumman's Protest

L.A. County supervisors refuse to put the brakes on the 230-megawatt project despite the military contractor's contention that it would interfere with its radar testing operations.
The Los Angeles County Board of Supervisors denied a request from Northrop Grumman Corp. to delay final approval of a major solar project in the Antelope Valley near the military contractor's facility for testing radar evading stealth aircraft.
On a voice vote, supervisors rejected Northrop's appeal Tuesday, opting to let plans for the 2,100-acre complex of photovoltaic solar panels proceed. Final approval was expected Dec. 7, 2010.
Grumman argued that the project would "adversely impact the military mission" of the sensitive, 1970s-era testing center, just south of the Tehachapi Mountains in Kern County.
Antonovich noted that the project, AV Solar Ranch One, already has received a conditional use permit from the county regional planning commission.
The renewable energy developer, First Solar Inc. of Tempe, Ariz., has solid backing from area business, civic and government leaders, including Gov. Arnold Schwarzenegger, Sen. Dianne Feinstein (D-Calif.) and the mayors of Lancaster and Palmdale.
The 230-megawatt project would provide 400 construction jobs in an economically depressed part of the county, said Frank De Rosa, a senior vice president. Once completed in 2013, it would generate enough electricity to power 75,000 homes.
A solar energy generating plant is "the highest and best use for this particular property," said Mel Layne, president of the Greater Antelope Valley Economic Alliance.

The Daily News wire also reported on the story stating that a representative from Northrop Grumman said the 10 foot high photovoltaic panels would interfere with the contractor's testing of stealth aircraft. Northrop tests the B-2 bomber in the high desert and manages "several fully classified programs" aimed at creating the "next generation of stealth aircraft" in Palmdale, which would be adversely affected, said Leonard Figueroa, a director of engineering for Northrop. He said the projects at risk are secret and could not be publicly discussed.
The county's Regional Planning Commission approved the project on Sept. 15. Attorneys for Northrop Grumman did not file documents in objection until Friday. Attorneys for Northrop from Sheppard Mullin Richter and Hampton "just dropped off a stack of materials Friday afternoon," said Supervisor Michael Antonovich, adding that he found the last-minute timing "unprofessional."
Jack Rubens of Sheppard Mullin said experts needed time to review the Environmental Impact Report for the project, which they didn't receive
"The goal is to allow this project and others to go forward," said Rubens. But his client sought to delay the project until they could work out alternatives with the county.
Antonovich said he understood that the company was positioning itself to ask for payments from the county to mitigate the cost of making operational changes. The supervisor noted that public hearings were held in June and September and detailed the long history of the permitting process more than once during the discussion, trying to refute Rubens' allegation that the defense contractor learned of the project only after it was approved.
The supervisor added that he had no advance warning of Northrop's decision last January to move its headquarters and 300 to 360 jobs to northern Virginia. He learned of the move on the morning of the company's announcement to the press, he said.
The affected Northrop facility "directly supports programs employing 15,000 people in Los Angeles County," but only 15 employees work at the site, according to Figueroa.
The board's vote to allow First Solar Inc. to proceed with the project was unanimous.