Today’s annual report on new home construction in Connecticut last year confirmed what we already knew: building was at a discouraging, decades low.
Permits issued by all towns and cities in 2011 for single-family houses, condominiums and apartment units plunged 19 percent, to 3,173, down from 3,932 the previous year, according to the survey by the U.S. Census released by the state Department of Economic and Community Development.
Is this the bottom? One economist told me today that he believes the number of permits issued in 2012 will represent an increase over last year. The state’s job market is “healing modestly” and home sales are up slowly helping to reduce inventory on the market.
“We’ve turned the corner,” Donald L. Klepper-Smith, an economist at DataCore Partners in New Haven, told me. “But it would be a mistake to characterize the current housing recovery as robust. We’re coming back inch by inch and not yard by yard.”
In the first three months of this year, permits surged, but some of the increase may reflect the mild winter, compared with the severe one in 2011.
Klepper-Smith said a larger share of the demand in construction is likely to come in apartments, as people put off purchasing houses or even deciding against buying all together.
Today’s report showed that single-family house construction still, by far, represented the largest share of building activity last year, at 2,162 authorized units, followed by buildings with five or more apartments at 763 units.
Wherever the demand comes from, it will be years before the state reaches between 8,000 and 10,000 new units a year, considered a healthy market.
Last year, Fairfield County led the state with 937 units, while Windham County had the lowest, at 104 units. Hartford County logged in at 600 units.
The net gain in new housing was far less than 3,173 units approved for permits because the towns and cities also authorized 1,148 demolitions last year.
The report is notable because it provides a once-a-year snapshot of residential building in all the state’s municipalities. The monthly reports cover a smaller sample of 128 towns and cities, but have been a good gauge of building activity statewide.
Today’s is a bit bleaker than than the 16-percent slide for 2011 indicated earlier this year in the smaller sample.
- -- ADVERTISEMENT --
- Mohegan Sun Palmer Shopping Area Plans Dwarf CT Casino Retail Space
- Historic Simsbury House Purchased By Investor Group
- Grant Aids Community Organizations Hire Foreclosure Prevention Specialists
- Report: CT Home Sales Slide In March But Prices Rise
- Historic Building Projects Face Delays Over Tax Credits
- Gman on Mohegan Sun Palmer Shopping Area Plans Dwarf CT Casino Retail Space
- Patrick on Mohegan Sun Palmer Shopping Area Plans Dwarf CT Casino Retail Space
- Smoke Fire on Mohegan Sun Palmer Shopping Area Plans Dwarf CT Casino Retail Space
- pete on Grant Aids Community Organizations Hire Foreclosure Prevention Specialists
- Kenneth R. Gosselin on Grant Aids Community Organizations Hire Foreclosure Prevention Specialists
- Commercial Construction
- Commercial Transactions
- Downtown Hartford
- Foreclosure Sales
- Hartford Redevelopment
- Katharine Hepburn House
- Mortgage Fraud Settlement
- northland investment corp.
- On the Market: Commercial Properties For Sale
- Residential Real Estate Reports
- Stores and Restaurants
- Trading Spaces
- -- ADVERTISEMENT --