Residential Building Permits Summary
According to the latest data from the US Bureau of the Census on housing units authorized by building permits, New Jersey had 4,274 units approved for construction in May. This is 1,200 more permits than the 3,074 issued in May 2014. This 39.0% increase occurred because gains for units in multi-family structures (1,417 units or 68.5%) offset losses in authorizations of single-family houses (-217 units or -21.6%).
Over the month, the number of housing units authorized for construction rose by 1,196 units or 38.9 percent compared with April’s revised total of 3,078. This was the result of gains in approvals of multi-family housing (1,459 units or 72.0 %) offset by losses in authorizations of single-family houses (-263 units or -25.0%). Approvals of multi-family units often vary widely from month to month because many are produced in large batches for housing developments or apartment complexes. Of the units for which permits were issued in May, 81.6 percent (3,486) were multi-family and 18.4 percent (788) were single-family.
Hudson County led the state with the most issuances of building permits with a total of 877. Of these, 854 units were in multi-family structures and 23 were for single-family houses. Hoboken led the county’s municipalities with the most authorizations (240) with all of the units in multi-family housing. Ranking second among the county’s municipalities was Secaucus with a total of 208 approvals. Of the units approved, 207 were multi-family and one was single-family.
In second place was Bergen County where permits were issued for 427 units including 346 units in multi-family buildings and 81 single-family houses. The municipality with the most approvals (138 units) was Lyndhurst Township including 137 in multi-family housing and one single-family house.
The third-ranking county was Middlesex, with a total of 415 approvals, including 361 units in multi-family structures and 54 single-family houses. Approvals were centered in New Brunswick where a total of 242 units were authorized including 241 multi-family residences and one single-family house.
Ranking fourth among the state’s 21 counties was Essex, where a total of 359 units were authorized including 341 in multi-family structures and 18 single-family houses. The municipality with the most approvals was City of Orange Township (139), where 138 of the units were multi-family and one was single-family.
Rounding out the top five was Morris County with a total of 357 units including 287 multi-family residences and 70 single-family houses. The leading municipalities in the county were Wharton (93) and Rockaway Township (47). In Wharton, all of the units approved were multi-family. In Rockaway Township, 45 of the authorizations were in multi-family structures and two were single-family houses.
Nationally, the issuance of building permits on a not seasonally adjusted basis rose by 6,310 or 6.0 percent over the month from 104,825 in April 2015 to 111,135 in May 2015. Across the United States, building permits went up over the year by 18,909 or 20.5 percent from May 2014 when issuances stood at a level of 92,226. For the month of May 2015, single-family houses accounted for 56.0 percent of the units authorized, while 44.0 percent were multi-family.
New Jersey’s total of 12,798 units authorized year-to-date through May 2015 was up by 723 or 6.0 percent compared to the May 2014 total of 12,075. The northern part of the state remains an important driver of housing demand in New Jersey as three counties (Hudson, Bergen and Essex) combined approved 4,654 units through May 2015 and were responsible for 36.4 percent of the statewide total. Hudson County ranked first among the state’s 21 counties and issued permits for 2,520 units, including 2,446 multi-family residences and 74 single-family houses. Third-ranking Bergen County approved 1082 units, including 733 multi-family residences and 349 single-family houses. Fifth-ranking Essex County authorized 1,052 units, including 737 in multi-family housing and 315 single-family houses.
Middlesex County (1,207 units) ranked second in the state for the most residences authorized. Of the units authorized, 910 were in multi-family structures and 297 were single-family houses. The county is located in the central part of the state, a region hosting Rutgers and Princeton universities and is noted as a center for the pharmaceutical and healthcare industries.
In fourth place was Ocean County, which authorized 1,075 units, including 829 single-family houses and 246 residences in multi-family buildings. This county, located along the Atlantic coast benefited from approvals to replace houses lost due to Hurricane Sandy as well as from strong demand for additional vacation and retirement homes. The county led the state in permitting for single-family houses.
The top three municipalities in the state for permit issues so far this year were all located in Hudson County. Jersey City authorized a total of 1,044 units, including 992 in multi-family housing and 52 single-family houses. In Secaucus, 508 approvals were granted, including 503 multi-family residences and five single-family units. Hoboken approved 446 units, all in multi-family structures. Situated across from Manhattan, Hudson County is a desirable place to live for workers employed in the nation’s largest city.
In fourth place was New Brunswick, situated in Middlesex County, where a total of 445 units were proposed, including 441 in multi-family housing and four single-family houses. This city is the home of Rutgers University as well as the main campus of Robert Wood University Hospital and the world headquarters of the Johnson & Johnson pharmaceutical firm.
Across the United States, 458,119 units were authorized on a not seasonally adjusted basis year to date through May 2015. This represents a gain of 47,151 or 11.5 percent over the level of May 2014 (410,968). Through May 2015, 59.8 percent of the units authorized were single-family. The remaining 40.2 percent were multi-family.
Detailed residential building permit data for New Jersey, its counties, as well as all 565 municipalities are available from the New Jersey Department of Labor and Workforce Development on the Internet (http://lwd.dol.state.nj.us/labor/lpa/LMI_index.html).