NJ Homebuilding Up Sharply
by Patrick J. O'Keefe, Director fo Economic Research
New Jersey homebuilders obtained 2,564 building permits (i.e., authorizations to begin construction) in May. This was the largest number of approvals since August and the third biggest draw since June 2008. [Chart 1]
Through the year’s first five months, homebuilding in New Jersey has recorded its best start since 2007. Year-to-date authorizations totaled 10,741, one-fifth (20.5%) above 2013’s comparable period. [Chart 6]
Authorizations of multifamily (i.e., attached) dwellings has led the year-to-date advance, accounting for 58.5% of all approvals. This was a bit above last year’s share and the fastest start since the 1960s. [Charts 4 and 11]
Single-family approvals rose for the third consecutive month, exceeding 1,000 for only the third time since August 2007. The three-month average was equivalent to the level maintained throughout the second half of 2013. [Charts 7 and 8]
Permit data (especially multifamily authorizations) tend to be volatile month-to-month and, like many economic indicators, vary seasonally. Adjusting for those factors – by using a three-month moving average of seasonally adjusted data – residential construction is the strongest it has been since January 2007 and is almost triple the housing contraction’s mid-2009 nadir. [Chart 6]
Despite this year’s gains, approvals remain almost one-third (-31.6%) below June 2005, when the seasonally adjusted three-month average stood at 3,297 units.
The statements, opinions, and conclusions contained herein are based solely upon the author’s own studies, research, and personal experience. Neither CohnReznick nor the author make any representation or warranty as to the accuracy or completeness of this information. CohnReznick and the author expressly disclaim any liability for any loss or damage which may be incurred, of any kind whatsoever, as a result of or arising from the use of any of the information contained herein or reliance on the accuracy or completeness of it.