N.J. homebuilding on track for best year since 2006
DECEMBER 24, 2014 LAST UPDATED: WEDNESDAY, DECEMBER 24, 2014, 1:21 AM
STAFF WRITER |
* Multifamily housing helps to put the state on pace for its best year since 2006
By KATHLEEN LYNN
Driven by multifamily projects, home building in New Jersey rose in November, putting the state’s new-home production on track for its strongest year since 2006.
Through November, builders have obtained permits for 25,451 housing units, about 15 percent ahead of the same period last year. The state has been climbing out of a deep housing crash that brought home construction to lows not seen since World War II — about 13,000 units a year.
Three in five new housing units this year have been in multifamily buildings, mostly rentals, a striking shift from earlier suburban development patterns in the state. The sector is so active that some analysts have asked whether there might be an oversupply of new rentals on the market soon.
Patrick O’Keefe, an economist with the accounting firm CohnReznick in Roseland and New York, said New Jersey multifamily permits have fallen off in recent months, compared with the summer months — possibly a result of builders worried about creating a glut. But, he said, the North Jersey market is likely to continue benefiting from a spillover of demand from New York City, where rents tend to be higher.
O’Keefe predicts building permits in the state to rise again in 2015, to about 30,000 units.