Courtesy / Camoin Associates
Tom Dworetsky, director of research for the New England office of Camoin Associates
August 11, 2022
Maine's number of building permits issued fell sharply in June
PETER VAN ALLEN
A six-unit condo building under construction earlier this summer in Hallowell.
The number of building permits issued in Maine in June dropped off sharply, and through six months Maine is slightly behind last year’s pace, according to data collected by the U.S. Census Bureau.
In June, 593 building permits were issued in Maine, down from 803 a year ago.
Single-family homes made up the bulk of the permits, with 454 tallied in June, compared to 614 in June 2021.
The slowdown parallels what’s happened in the existing home-sales market, which has seen the impact of rising interest rates and lack of inventory.
In addition to the higher cost of borrowing, new construction would also be affected by volatility in the price of building materials as well as ongoing workforce shortages.
“Higher interest rates are highly impacting the ability of first time home buyers to enter the market and all of these trends are placing upward pressure on the rental market therefore continuing the housing crunch for many Mainers,” said Tom Dworetsky, director of research for the New England office of Camoin Associates.
The drop in building permits comes after several years of steady gains, with 2021 being the strongest year for new construction since 2007, in the building boom prior to the recession of 2008-09.
Gains were recorded nationwide and in the six New England states in June.
Nationwide, 157,000 building permits were issued, up from 154,000 in June 2021.
In New England, 3,937 permits were issued, up from 3,449 in June 2021. Maine, New Hampshire and Rhode Island saw declines, while Massachusetts, Vermont and Connecticut recorded increases.
In Maine State Economist Amanda Rector's monthly "Maine Economic Indicators" report, published Aug. 2, she said Maine's House Price Index grew by 22% in the first quarter of this year, compared to 16.4% for New England and 18.7% nationally.
"Maine’s [House Price Index] grew at the 12th-fastest rate in the U.S. and came in 1st in New England in the first quarter," she wrote in the report, which was co-authored by analyst Angela Hallowell.
Versus 2021
Through the first six months of the year, Maine's number of building permits issued is slightly below 2021.
In Maine, 3,448 permits were issued in the first six months, down from 3,484 through June 2021.
At least for now, the nation and New England are still surging.
Across the United States, 899,732 permits were issued in the first six months of the year, up from 865,579.
In New England, there were 19,933 permits issued through the first six months of the year, up from 19,164 in 2021, with Maine, New Hampshire and Connecticut recording declines.
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