5. Connecticut
> Building permits/total housing units: 0.09%
> Decline in building permits 2005-2011: -74.06% (14th largest)
> Building permits 2011 YTD: 1,403
> Total housing units: 1,487,891
Connecticut has had one of the greatest declines in the number of new building permits in the country. This trend saw a small turnaround in June — the first monthly year-over-year gain in 2011 in new construction, according to the Connecticut Department of Economic and Community Development. However, the Hartford Courant reports that for “the first six m
onths of the year, residential construction was down 30 percent compared with the same period in 2010.” June was also the first increase in home construction in five years.
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4. Michigan
> Building permits/total housing units: 0.09
> Decline in building permits 2005-2011: -82.19% (7th largest)
> Building permits 2011 YTD: 4,250
> Total housing units: 4,532,233
Michigan is one of the states that has suffered the most from the recession. The state’s unemployment rate peaked around 15% in 2010. It is now at 10.5%, which is still significantly higher than the national average of 9.2%. The state has a vacancy rate of just under 15%, which is one of the highest in the country. New building permits have also decreased by over 80% since 2005, also one of the highest rates in the country. The state may now be more focused on tearing down old buildings than building new ones.
3. Illinois
> Building permits/total housing units: 0.09%
> Decline in building permits 2005-2011: -84.18% (3rd largest)
> Building permits 2011 YTD: 4,897
> Total housing units: 5,296,715
Illinois has seen an almost 85% decrease in new housing permits since 2005. This is the third largest drop in the country. There are a number of initiatives being made across the state to improve the housing markets. In Chicago, for instance, Mayor Emanuel has made a number of changes to increase the speed with which building permits are issued. Additionally, a “Micro-Market Recovery Program” has been introduced to slow the city’s foreclosure rate.
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2. West Virginia
> Building permits/total housing units: 0.09%
> Decline in building permits 2005-2011: -72.71% (17th largest)
> Building permits 2011 YTD: 774
> Total housing units: 881,917
West Virginia’s decline in building permits has slowed to almost a crawl. In the first six months of 2005 the state issued almost 3,000 permits. For the first half of 2011, that amount decreased to 774. If every permit were to result in a new housing structure, those homes would represent less than 0.1% of the total housing units in the state. Despite all this, construction is one area that is benefiting the state. According to the organization WorkForce West Virginia, 700 construction jobs were added in-state this past July — the largest amount of jobs added in the private sector.
1. Rhode Island
> Building permits/total housing units: 0.07%
> Decline in building permits 2005-2011: -70.81% (22nd largest)
> Building permits 2011 YTD: 312
> Total housing units: 463,388
Foreclosure filings increased 4% in Rhode Island from the first six months of 2010 to the first six months of 2011, according to RealtyTrac. Foreclosures dropped by 29% for that same period on the national level. Rhode Island home sales decreased 20% from one year ago in the second-quarter, according to the Rhode Island Association of Realtors. Additionally, median home prices have dropped 2%. These numbers indicate that Rhode Island’s housing market is not recovering at the same pace as the majority of the country. For this first six months of this year, the state has issued a mere 312 building permits, the smallest number in the country.
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Douglas A. McIntyre and Charles Stockdale
