Only 1,922 new home permits were authorized across the entire state of Connecticut in the first half of 2018, according to the U.S. Census. Just under 300 of these permits were issued in the month of June, down 9% from June 2017.
Eric Santini Jr., principal of Santini Homes and president of the Home Builders & Remodelers Association of Central Connecticut (HBRACC), attributes the construction slump to Connecticut’s economic slowdown and low job creation. The state only added 1,800 new jobs in 2017, and authorized only 4,547 new single-family homes and multi-family units with a total value of $1.2 billion. Its new residential activity has fallen 17.4% since 2016 and 25.2% since 2015.
Other pain points include rising tariff-related costs, high municipal fees, and skilled labor shortages. The state also has the seventh-highest rental housing costs in the country, and 40% of residents aged 18 to 34 live with their parents – the second-highest share in the nation after New Jersey.
Santini Homes has no new single-family houses on its build schedule for the first time in 15 years, and only one spec single-family home for sale. Like many other Connecticut builders, its current projects are built for rent.
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