Rhode Island now ranks last in the US for building new homes

Wednesday, July 27, 2022

View larger +

PICTURES: file

A new report ranks Rhode Island last in the United States for building new homes per capita.

The study finds that Rhode Island issued only 1.27 permits per 1,000 residents in 2021.

Massachusetts issued 2.82 permits per 1,000 residents.

GET THE LATEST NEWS HERE – SIGN UP FOR GLOCAL’S FREE DAILY EBLAST

According to the June report from the RI Association of Realtors, the median price of a single-family home in Rhode Island is $430,000. In the Boston metro area, the price of a single-family home has reached $900,000.

In contrast, Utah issued 11.94 permits per 1,000 residents.

National trend

The State of New Homebuilding in America study looked at US Census Bureau data on new building permits from 1986 to 2021.

“The five hottest real estate markets are Utah, Idaho, Florida, South Carolina and Colorado. The five slowest were Rhode Island, Connecticut, Illinois, New York and Virginia -Western,” the study says.

Nationally, the number of permits to build new homes increased during COVID and has increased every year since 2009, although the number of new permits remains lower than it was before the Great Recession.

From 1986 to 2007, the United States averaged 5.6 new residential building permits per 1,000 people. Then, a massive drop of 73%, a drop in 2009 — to just 1.9 building permits per 1,000 inhabitants.

View larger +

New apartment complex on Waterman in Providence PHOTO: Will Morgan

Going from a single-family to a multi-family

The study also reported that nationally, there is a significant shift from single-family building permits to multi-family permits. At its peak in 1992, 83% of permits were for single-family homes. Today, that percentage has dropped to 64%.

In RI, 74% of building permits are issued to single-family homes. It is the 16th highest in the country. In Massachusetts, only 36% of permits are for single-family homes.

The analysis was developed by BHP using national statistics and state-by-state data from the US Census Bureau.

  • 8 contractors charged in RI for substandard and unfinished construction
  • Providence entrepreneur denounces city construction and lack of communication
  • Beautiful new apartments on Eighth Street – architecture critic Will Morgan
  • $15 million apartment projects approved for south side of Providence
  • Two apartment buildings on the east side –– Architecture Critic Morgan
  • Promenade Apartments are no more – new owner changes name
  • One of Rhode Island’s largest apartment developers hit with EPA penalty
  • How 195 Innovation District Became a Collection of Apartment Buildings
  • The New Providence Apartments: Wrong Building, Wrong Place –– Architecture Critic Will Morgan
  • What You Can Buy – East Providence Residential Apartment Investment Opportunity
  • Public criticizes revised proposals for 195 apartments
  • 92-unit Chestnut Commons apartment complex inaugurates Jewelery District
  • RI apartment complex hit by law enforcement action, hundreds affected
  • Proposed 5-storey apartment complex just off Thayer Street
  • Fane Tower by the numbers: how many condos, apartments, jobs, restaurants and more
  • Pawtucket Football Stadium Developer Says Costs Are Rising Across Project – Apartments, Retail
  • A proposed 5-story apartment and retail complex on the east side, the Monahan Funeral Home will be demolished
  • EXCLUSIVE: Historic Promenade Apartments for Sale in Providence – 430+ Units
  • RI single-family home sales drop 15.6% in December
  • Record number of single-family home sales sold in RI in 2017, realtors say
  • RI condo and single-family home sales set new records in Q1 2017
  • Single-family home sales rise 10% in July, reports RI Realtors
  • RECORD: The median price of a single-family home in RI is now $420,000
  • Median RI price for single-family homes drops for second consecutive month
  • Out-of-Staters Buy Up RI, median single-family home price hits $390,000
  • New records for single-family homes: US$416,000, RI$430,000 and Boston Metro $900,000

Like this article ? Share it with others.