Large share of N.J.'s dwindling development driven by five counties by ProQuest


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									                                                                               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
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
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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.

        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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