AT A TIME when residential building permits in the Garden State are at a 60-year low, redevelopment projects, customer demand and state planning regulations are driving the bulk of building activity to five northern and central New Jersey counties, according to local homebuilding experts. K. Hovnanian, which has been issued permits in all five of the counties this year, seeks to build in towns willing to work with builders in bringing new residential projects to those municipalities, he said.
Real Estate Large share of N.J.’s dwindling development driven by five counties Most of residential building permits this year were issued in North Jersey Karmatz, president of the new Jersey Builders majority of their development in planning areas association, in Hamilton. “there’s been a push 1 and 2 — the areas designated for growth — so By EvElyn lEE including 77 Hudson, in Jersey city; Four Seasons to try and steer development around transpor- “it’s far easier to get building permits in those at a time when residential building permits in at manalapan; Four Seasons at South knolls, in tation,” he said, “and the areas that have the areas,” karmatz said. But “developers in South the garden State are at a 60-year low, redevelop- Jackson; and the Jockey club, in oceanport. transportation centers are the northern coun- Jersey have more difficulty getting water, sewer ment projects, customer demand and state plan- where building permits are issued in new ties that would be close to the city and would be approvals, because a lot of those areas are not ning regulations are driving the bulk of building Jersey is “really a function of where this state T:7.5” used to living in multifamily” developments. considered to be in planning areas 1 and 2.” u activity to five northern and central new Jersey has tried to direct development,” said Michael most of the counties in new Jersey have the E-mail to email@example.com counties, according to local homebuilding experts. new Jersey’s builders — which pulled 6,740 permits during the first seven months of 2009 — are on track to start construction on the few- est number of new homes since 1945, said Pat- rick O’Keefe, director of economic research at J.H. Cohn. an estimated 11,600 permits will be issued in 2009, more than 30 percent less than 2008, when 18,363 permits were drawn. Year-to-date, nearly half the building permits in the state were issued in five counties: Hudson, essex, ocean, monmouth and morris. Hudson, with 1,352 permits as of July, accounted for 20 per- cent of the state total, and along with essex, “have been prominent among the counties responsible IS YOUR WORKING CAPITAL for building permits for a couple of years now,” o’keefe said. “in both cases, it reflects the amount WORKING HARD ENOUGH? of redevelopment in older metropolitan areas.” the older metropolitan areas attracted mul- tifamily projects, which account for the major- WE CAN HELP. ity of permits in the three northern new Jersey counties, he said. of the 1,352 permits in Hudson, 1,316 were for buildings with two or more units, while 421 of the 527 permits in essex and 262 of the 436 permits in morris were multifamily, the data said. multifamily projects, however, were “What drives where we build is where people want to live.” PNC Corporate & Institutional Banking. A leading provider to the middle market. T:10” Douglas Fenichel, K. Hovnanian Homes far less prevalent in monmouth and ocean, with ocean only showing 14 of its 479 permits for such development, according to the census Bureau. One of the realities of today’s uncertain economy is simple: your working capital needs to
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