Housing

Charts:

The housing industry entered a new phase in 2007. Following national trends, the housing bubble burst, making mortgages hard to obtain and putting off new purchases for many people. In the entire state, residential building permits fell by 26.1%. The decline of units in three of the four District counties exceeded this rate. These declines come on the heels of robust gains in the previous 5 years. From a national perspective, however, it appears that an orderly market prevails in comparison to numerous parts of the nation, i.e. Florida, Las Vegas and California.

Atlantic County had the largest decline in the number of new permits issued, 757. This amounted to a 40% reduction in just one year. Virtually every municipality experienced a decline. The Pinelands growth communities in Atlantic County - Galloway, Egg Harbor Township and Hamilton - continue to outpace the rest of the towns recording over 50% of the new units in 2007.

Cape May County experienced a similar decline of 31.6% in building permits in 2007. Many of the housing purchases in the county are discretionary, coming from retirees or second-home owners who can wait until the housing market stabilizes if they wish. The number of permits issued in 2007 was 1,081. Lower and Middle Townships along with Ocean City accounted for over 50% of the new permits issued. The recent housing boom in the Wildwoods was particularly hard hit.

While still declining, Cumberland County showed only a modest 7.3% decline in building permits. Coming off a ten-year high in 2006 of 737 permits, the county remains one of the least expensive housing markets in the state and permit levels remain above those in 2004-2005. Millville and Vineland accounted for some two-thirds of the annual permits issued.

While a housing boom in Salem County is usually measured in the tens of units due to its historical slow population growth, the latest decline was a 50.3% decline, the second largest in New Jersey. At 148 units for 2007, the traditional slow growth trend is safe.

It appears that, on whole, the southern New Jersey region mirrored state and national trends. Given recent reports by homebuilders coupled with difficulties within the residential mortgage industry, recovery in the housing market may not occur in the near term.