Housing demand is up, but remains constrained

//July 31, 2009

NULLHomebuilders in the Garden State are on track to begin construction on the fewest number of units this year since 1946, according to Patrick OÂKeefe, director of economic research at J.H. Cohn LLP, a Roseland-based accounting firm.

In the first half of 2009, the stateÂs residential developers obtained nearly 6,000 building permits, according to new Census Bureau data released last week. This was about half the number of permits awarded during the first six months of 2008, OÂKeefe said.

But demand for housing in New Jersey Âhas remained fairly sizable, even as the market weakened,Â as price reductions, lower interest rates and rising incomes have made homes more affordable, he said. ÂHousing affordability [is] at its highest level in seven years.Â

Residential construction is not likely to pick up in the Garden State until well into next year, said OÂKeefe, who projects about 12,000 homes will begin construction in New Jersey in 2009, and about 16,500 units in 2010.