CT Housing Permits Poised to Reach Five-Year High in ’13

by Categorized: Residential Real Estate Reports Date:

New home construction in Connecticut remains on a pace to be the strongest in five years, a new report shows, although the levels are still far below what is considered a healthy building market.

Through the first eleven months of 2013, permits were issued for 3,741 single-family houses, condominiums and apartment units, the heaviest volume since 2008 when 4,757 were issued for the same 11-month period, according to the state Department of Economic and Community Development.

Housing construction in the state hit bottom in 2011 and has been picking up since then. Last year, permits for new housing units soared 47 percent, to 4,669, from 3,173 in 2011.

Although the number of permits issued continues to rise, the year-over-year increase slowed in 2013. Through November, permits issued are up just 3.5 percent, compared with the same period last year.

Few experts expect building to return to the levels of the late 1980s when Connecticut municipalities granted permits for 25,000 residential units annually. But most economists agree that a healthy volume would be 8,000 to 10,000 units a year.

In November, the number of housing permits totaled 272, up 26 percent, compared with 216 for the same month a year ago.

The state’s monthly permit report is drawn from U.S. Census data and is based on a survey conducted monthly of 128 towns and cities in Connecticut. Once a year, all 169 municipalities are surveyed for an annual total. Monthly and annual tallies have tracked each other relatively closely in recent years.

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