New construction for homes in Connecticut continues its freefall, dropping 47 percent in May compared with a year ago figures, according to the state Department of Community and Economic Development.
The decline is dramatic when reviewing housing permit data for May 2004. Five years ago, the number of housing permits issued in May by Connecticut towns was 770. Last month, it was 192, a 75 percent drop in new home construction.
The state’s home construction industry has been hit significantly over the past five years. Year to date, from January through May, towns approved 1,031 permits for home construction as compared with 3,566 in 2004 for the same time period.
“The fluctuation in permits reflects isolated activity and not sustained growth,” said Stan McMillen, managing economist for DECD. “If you subtract the two multiple-unit dwellings (164 units combined, in Norwalk and Danbury), there were 175 other units in the 128 reporting towns. We are a long way from a housing recovery and the current permit number reflects that.”
Eric Person, executive officer with Home Builders Association of Hartford County, said his members are working through the current recession but are hopeful that the federal stimulus package that offers first-time homebuyers an $8,000 tax credit will boost the home construction industry.
