1998 Construction Report Connecticut Housing Production & Permits

• Download Construction Report in Microsoft Word (Word, 200K)
• Download Construction Report in Adobe (pdf, 255K)
• Download Construction Report Excel tables (xls, 144K)

The Department of Economic and Community Development (DECD), the lead agency in matters related to housing, economic development and community development in Connecticut, monitors housing growth, analyze trends, and collects data concerning the private sector of the housing market. DECD annually publishes statistics on housing production in the state, and distributes a monthly update to all interested parties.

This report represents the annual statistics on permit-authorized construction, specifically the additions to and reductions from the Connecticut housing inventory. The statistics are based on reports submitted by local building permit offices in response to a monthly survey conducted by the Construction Statistics Division of the U. S. Bureau of the Census.

Beginning in 1996, the Bureau of the Census changed the reporting forms used by towns to transmit these data. Towns no longer report on permits for demolitions, additions and alterations or distinguish between the privately owned and publicly owned units. In 1997, the Bureau of Census further eliminated distinguishing between one-unit attached and one-unit detached building permits. Therefore, only one-unit permits are issued and reported.

DECD, on behalf of Connecticut, acts as a cooperating agency in this survey. The data contained in this report were subject to continuous revision.

TOTAL HOUSING PRODUCTION

According to the recent released housing statistics from the Bureau of the Census, Connecticut permit authorization reached 11,863 units in 1998. As the graph below indicates, in 1998 we experienced the largest growth since 1990. There were eight months out of the year that housing permits issued set records. Compared to a year ago, total housing production increased 26.9 percent from the 9,349 in 1997 to 11,863 in 1998, the biggest percent increase since 1987. In 1998, 9,130 permits were authorized for single-family dwellings, accounting for 77 percent of all the permits issued. Condominium and apartment buildings with five units or more shared almost 20 percent of the market.

Figure 1 presents the distribution and percentage change of the new housing units permitted in 1997 and 1998 by structure type.

DEMOLITION AND NET GAIN

Again, at the end of 1998, DECD sent out a survey to collect the residential demolition permits issued. Over 90 percent of the cities and towns responded to our request. Hartford issued the most demolition permits with 1,200 units, New Haven with 370, New Britain with 281, Bridgeport with 276 and Waterbury with 109. The five cities contributed over 75 percent of all demolition permits. The net gain to Connecticut’s housing inventory totaled 8,895 units in 1998. This was an increase of nine percent from 1997’s net gain of 8,156. The reader should consult the table "Net Gain in Rank Order" for more information.

COUNTIES

In 1998, Fairfield County authorized the largest number of new residential permits with 2,978, followed by Hartford County with 2,790, and New Haven County with 2,301. These three counties combined accounted for 68 percent of total permits issued. All three counties set records for new permits issued in this decade. Compared with the State growth rate of 26.9 percent, Fairfield County fared much better with growth of 45.6 percent, followed by Middlesex County with 43.8 percent, and Tolland County with 36.5 percent. Figure 2 presents the changes and percentage changes of the housing units permitted by county in 1998 and 1997.

MUNICIPALITIES

The top five communities combined accounted for almost 20 percent of the total permits authorized. Danbury led all Connecticut communities with 926 permits issued, up 174 percent over the 1997 total 242 units. Manchester ranked second with 483 units, an increase of 162 units, up 50 percent over the 1997 total of 321 units, followed by Hamden with 458 units, Middletown with 254 units, and Glastonbury with 246 units.

MEDIAN HOME SALES PRICE

According to the Connecticut Policy and Economic Council (CPEC), Connecticut’s median sales price rose 1.4 percent from $138,000 in 1996 to $140,000 in 1997. The number of home sales increased by 3,356, or 8.5 percent. The average home price in Connecticut was slightly over $204,000, compared with $195,000 a year ago, representing a 4.6 percent increase from a year ago. This increase suggested that more expensive homes were sold in 1997 than in 1996. Stamford, Norwalk, Greenwich, Bridgeport and Fairfield are the top five municipalities with the most housing transactions during 1997. All of them combined accounted for 15 percent of total home sales. Fairfield County showed the most home sales activities compared to the rest of the State.

CONSTRUCTION VALUE

The valuation of construction is the cost of construction as recorded on the building permit. This figure usually excludes the cost of on-site development and improvements, and the cost of heating, plumbing, electrical and elevator installations.

The total investment in authorized construction activity was an estimated $1.262 billion during 1998. This was an increase of 23 percent from 1997’s level of $1.026 billion. The average construction value of single unit housing showed an increase of 6.1 percent from $130,363 in 1997 to $138,321 in 1998, and 8.8 percent higher compared to the level of 1996.

INVENTORY CHANGE

Connecticut’s inventory of residential units was estimated to be 1,383,597 at the end of 1998. This estimate was based on a net gain of 62,747 housing units authorized from January of 1991 through December of 1997, added to the base of 1,320,850 housing units reported in the 1990 census. Figure 3 illustrates changes in the housing unit inventory between 1990 and 1998.

Starting with the 1991 edition of this report, 1990 census figures were utilized as the base for Connecticut’s housing unit inventory. Prior reports relied on the 1980 census housing unit count as the base for housing unit inventory.

There are some differences in comparability between the 1990 census and the 1980 census regarding data collection and classification of several survey items in the housing unit inventory. In 1980, data on mobile homes and trailers were shown only for year-round housing units. In 1990, these data were shown for all housing units.

Also, the category, "Boat, tent, van, etc." was replaced in 1990 by the category "Other". This category is for any living quarters occupied as a housing unit that does not fit into the previous categories. Houseboats, campers, vans, and railroad cars are examples that would fit into this category. In some areas, the proportions of units classified as "Other" is far larger than the number of units that were classified as "Boat, tent, van, etc." in 1980.