New Home Construction Dips in Hazlet, Booms in Holmdel

New Jersey is seeing a bump in home construction, according to a NJ Spotlight report.

New residential construction levels declined significantly in the late 2000s due to the recession but the industry is finally starting to rebound, NJ Spotlight said. There was a 38 percent increase in the number of homes built in New Jersey from 2009 to 2012.

In Holmdel, five residential building permits for single-family units have been issued through May. In 2012, a total of 10 permits for single-family units were authorized, a 150 percent increase since 2009. Those figures compare to 2011’s seven single-family units, 2010’s two permits for single-family units and 2009’s four single-family units.

NJ Spotlight’s interactive map also shows an increase in construction value in Holmdel. In 2009, the construction value per home was $273,325 while it dipped to $225,541 in 2012 and rose to $283,873 for 2013. 

But Hazlet is seeing a different pattern — an 80 percent decrease in home construction from 2009 to 2012. In 2013, Hazlet has issued two single-family permits compared to 2012’s total of two single-family permits, 2011’s two, 2010’s six and 2009’s 10.

Construction value is also declining. In 2009, the construction value per home was $193,328; 2012, $140,000; and 2013, $120,000.

Rebuilding at the Jersey Shore post Superstorm Sandy could be a contributing factor to the 45 percent increase compared to the first five months of 2012, NJ Spotlight reported. But the state is also seeing a boom in building in areas that were not severely damaged by Sandy, especially in the construction of multifamily units.

Last year, 17,939 units were authorized statewide, an increase from the 12,952 in 2011, NJ Spotlight reported. Residential construction saw a real low in 2009 at 12,421, the lowest number of permits issued in more than two decades. The pre-recession high was in 2005, when 38,588 new housing units were authorized throughout the state.