The number of permits for new, privately owned housing units in Massachusetts soared in July — and many were for multi-unit housing, according to new census data.
Last month, building permits were authorized for 1,880 units, compared to 1,724 in June and a mere 715 in July 2012. Nationally, permits for 88,145 units were authorized last month, compared to 83,925 in June and 72,056 in July 2012. Of the building permits authorized statewide last month, 1,193 were for five units or more.
“Apartment construction is very hot,” said Gregory Vasil, CEO of the Greater Boston Real Estate Board. “More housing means more construction jobs, more money spent on steel and lumber. It’s good for the economy.”
Kimberly Allard-Moccia, president of the Massachusetts Association of Realtors, said resales of existing homes may be fueling the building boom.
“People are selling their homes,” Allard-Moccia said. “Maybe they’re making the move to new construction.”
Buyers are finding a sparse supply of single-family homes for sale, and a very small window of opportunity to buy them, said Gerry-Lynn Darcy, executive officer of the Builders and Remodelers Association of Greater Boston.
“People are anxious to buy homes, but houses don’t stay on the market for long, and it’s very hard to secure financing,” Darcy said. “If you don’t have a substantial down payment, it’s very difficult to purchase. Prices will get so high that people will decide to rent instead.”
Apartment building owners such as Harold Brown are counting on it. Brown, chairman of the Hamilton Company, the largest private owner of multi-family units in Boston, said the company is building 100 more units this year to add to the 5,500 it already owns and operates. Rental units are in demand, he said, because single-family home prices have “skyrocketed.”
Last November, Gov. Deval Patrick set a goal of 10,000 multi-family units of housing per year, saying new housing was vital to maintaining Massachusetts’ young, well- educated workforce.
The total number of new units so far this year in the state was 8,991, compared to 5,633 over the same period last year.
“We’re coming out of the worst recession in a generation, so it means more work opportunities,” said Mark Erlich, executive secretary-treasurer of the New England Regional Council of Carpenters. “It means a lot of people have been able to earn a stable living again.”