Monday, September 1, 2014

NJ Housing Starts Posts Best Year Since 2006

Despite last winter's weather delays, New Jersey builders are on track to start the largest number of homes since 2006, led by a boom in rental construction.

Through July, home builders have obtained more than 17,200 building permits this year, up 30 percent over the same period last year, according to the U.S. Census Bureau. Multifamily construction has continued to lead the way, accounting for 63 percent of the activity this year.

Approximately 1,100 of those permits were for modular single and multi-family homes.

Builders are focusing on rentals because many households have been unable to buy homes in a time of tight mortgage lending standards and flat incomes. In addition, many younger residents are wary of owning a home because the housing bust showed them that property values could drop.

Multifamily projects have recently been completed or are under construction in Fort Lee, Edgewater, Elmwood Park, Fair Lawn, Wood-Ridge and Bloomingdale, among other North Jersey towns.

Single-family permits have also risen this year, but at a much slower pace than multifamily. Single-family builders are being careful not to produce houses more quickly than sellers can buy them.

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