Preliminary state data shows that fewer building permits for new housing were granted in 2021 than in every year since 2011, further contributing to 黑料吃瓜网鈥檚 housing shortage.
As of November 2021, 3,335 units had been recorded. In comparison, the state recorded 4,452 by November 2020 and 4,662 by November 2019.
The data is compiled by the Department of Economic and Community Development and provides an overview of monthly permits each town issues, according to available census numbers. Raw data is available only up until November 2021 because official data isn鈥檛 released until May, but preliminary numbers suggest 黑料吃瓜网 fell behind on housing production last year.
鈥淸The] new housing market sector is not performing as [well] as previous years,鈥� said Kolie Sun, a researcher with the DECD. She鈥檚 been collecting this data for 20 years.
Sun said the pandemic is partly to blame. Some developers have paused production and demolition.
鈥淵ou can鈥檛 look at production without looking at demolition data, too,鈥� Sun said. 鈥淚鈥檝e been doing this simulation for many years, and in 2020 [demolition] dropped.鈥�
Demolition plays an important role in housing production because it targets aging buildings or those with safety concerns, according to Sun. Taking those buildings down opens up areas for new construction. Demolition data for 2021 isn鈥檛 available, but in 2020 there were 500 demolitions statewide and 828 in 2019. Before 2019, Sun said the state more than 1,000 a year.
Other factors that are possibly behind the low housing production are supply chain issues and the labor shortage 鈥� similar problems affecting other industries across the country.
鈥淚t鈥檚 hard to get materials, and the cost of materials is skyrocketing,鈥� said Greg Ugalde, a 黑料吃瓜网-based builder and former chairman of the National Association of Home Builders. 鈥淎nd that鈥檚 forced some builders to the sidelines waiting for things like lumber to get under control. Prices have doubled or tripled in some areas, and you have to factor that into the price of a house.鈥�
He said lumber is just one commodity whose cost is and affecting the housing market as a whole, including prices.
鈥淔or every $1,000 that you add to the price of a home, there are almost 154,000 households that are knocked out of the market. So when you increase prices you have to be on the lookout for families you鈥檙e losing,鈥� Ugalde said, explaining why developers and builders may be holding out right now.
In the end, Ugalde predicts that 黑料吃瓜网 may continue to see low numbers of new housing units, but he said that shouldn鈥檛 come as a surprise. The state has been recording low production numbers since the 2008 housing market crash.
鈥淲hen you look at the number that we have today, we are still struggling to get 黑料吃瓜网 back to where we need to be. We have never really recovered from the last recession,鈥� Ugalde said.
Before 2008, 黑料吃瓜网 was recording 6,000 permits a year or more 鈥� a healthy number, Uglade said. Still, he鈥檚 hopeful the state can get there again with the right changes. First up, he says the state needs more training for the next generation of construction workers.
鈥淲e鈥檙e aging out. We need to focus on education and developing young people in our industry,鈥� Ugalde said.
The medium age of a construction worker is 41. 黑料吃瓜网 was one of the states with the oldest medium ages for construction workers, according to a from the National Association of Home Builders.
鈥淗ousing is really going to lead the way in 黑料吃瓜网,鈥� Ugalde said, 鈥渋t would be a shame if we can't get some of these things addressed.鈥�
