HUD Quarterly Report
Quarter 1, 2021
HUD released its 1st Quarter PD&R Regional Report for New England, which reports on market conditions related to home sales and apartments in Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine. Items of note included the following:
Nonfarm payroll in New England averaged approximately 6.87 million, representing a year-over-year decrease of 565,100 jobs (approximately 7.6%). Nationally, the average was about 5.4%. The decline was the third-highest rate in the nation, trailing the New York/New Jersey and Pacific regions. Within the New England region, Massachusetts saw the greatest rate of decline at 8.5%, which accounted for 55% of total job lost, and New Hampshire the lowest at 5.2%. Connecticut’s decline was 7%.
Sales Market Conditions
Despite a decrease in overall inventory and weak economic conditions, home sales in the New England region rose in Q1 2021. The increase approximated 6% for the region as a whole. In Connecticut, the number of homes sold increased approximately 11% and saw about a 23% increase in average selling price per home. In Massachusetts, the number of homes sold remained even and saw about an 8% increase in average selling price per home. Permitting for single-family homes increased in all categories in the region as compared to Q1 2020. Also, due to the CARES Act, distressed home sales fell 31% during the 12 months ending February 2021, along with foreclosures falling 27%.
Apartment Market Conditions
Conditions were reported to be relatively stable, credited to the moratorium on evictions and late fees that had ended in May 2021. As a whole, the region reported that 83% of all renter households are up to date on rent compared to 80% nationally. Compared to Q1 2020, vacancy rates declined, and average monthly rent increased in all major metropolitan areas except Boston, MA. Vacancy rates were 3.1% and 4.3% in the Hartford and Bridgeport metropolitan areas, respectively.
Multifamily permitting declined 12% in the region as a whole, as compared to a 14% increase realized nationally. Connecticut and Massachusetts experienced a 48% and 45% decline in permits extended as compared to Q1 2020, respectively. Maine and Rhode Island offset these declines with rises in permitting of 34% and 78%, respectively.
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