Connecticut Residential Construction Ramping Up
(October 14, 2004) -- Residential construction has ramped up 12 percent across Connecticut this year, fueled by a 35 percent jump in Fairfield County, according to Census Bureau data.
Statistics show the number of permits for privately owned housing rose from 1,251 during the first eight months of last year to 1,689 during the comparable period this year. The overwhelming majority of those permits—1,214—were for single-family homes.
Local sources attribute the increased demand to generally low mortgage rates as well as to a shortage of available land, which is prompting many borrowers to renovate or raze existing properties and rebuild.
The land crunch also is exerting pressure on prices, which have climbed to a median of roughly $489,000 in lower Fairfield County. The U.S. Bureau of Labor Statistics estimates that seven of every 10 local employees don't earn the $127,781 annual income needed to purchase a single-family home at the median price, based on a 5 percent downpayment and a 30-year mortgage at 6 percent interest.
Source: Stamford Advocate (10/13/04)
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