Housing Continues to Claw Its Way Back

05.04.2016
Economy

Recent data compiled by the Connecticut Department of Economic and Community Development, covering all 169 Connecticut municipalities, tells a story of housing slowly clawing its way back into recovery.
In an average year, we see roughly 9,000 new units in the state. Since the Great Recession hit in 2008, however, housing has cratered.
But signs of life are emerging.
Our most recent performance of 6,077 units is at 65% of the normal 200 figure. And monthly reports show we are on track to beat 2015, though we’ll still far fall short of “normal.”
Housing recovery is important, because it creates so much activity in other areas: hardware and nursery purchases, and work for electricians, painters, and landscapers. In addition, it contributes significant tax dollars, especially sales tax revenues.
But housing is also tied to job growth (which is subpar here) and household formation (which is also lagging).
Overall, to get back to normal we need a better climate for investment in our state.
Connecticut Housing Trends, 2000-2015 

Year New Housing Units Change
(year-over-year)
2000 9,376
2001 9,290 -0.9%
2002 9,731 4.7%
2003 10,435 7.2%
2004 11,837 13.4%
2005 11,885 0.4%
2006 9,236 -22.3%
2007 7,746 -16.1%
2008 5,220 -32.6%
2009 3,786 -27.5%
2010 3,932 3.9%
2011 3,173 -19.3%
2012 4,669 47.1%
2013 5,424 16.2%
2014 5,329 -1.8%
2015 6,077 14.0%

Source: DECD and U.S. Census Bureau


Pete Gioia is an economist with CBIA. Follow him on Twitter @CTEconomist.

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