HUD Quarterly Report: Quarter 1, 2021
On March 9, 2021, HUD released its 4th Quarter PD&R Regional Report for New England, which reports on market conditions related to home sales and apartments in the states of Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine.
Nonfarm payroll in New England averaged approximately 6.98 million, representing a decrease of 607,600 jobs (approximately 8%) since Q4 2019. The drastic rate of decline was second only to the New York/New Jersey region. Nationally, the average was about 6%. Massachusetts saw the greatest rate of decline in the region at 9.1%, and Connecticut the lowest at 5.7%. Connecticut is the only state in the region to beat the national average.
Sales Market Conditions
Despite a decrease in overall inventory and weak economic conditions, home sales in the New England region rose in Q4 2020. Overall, the increase approximated 7% for the region as a whole as compared with an overall 2% decrease nationally. In Connecticut, the number of homes sold increased by approximately 13% and saw about a 17% increase in average selling price per home. In Massachusetts, the number of homes sold increased approximately 2% and saw about an 8% increase in average selling price per home. Permitting for single-family homes rose in all states in the region as compared to Q4 2019.
Apartment Market Conditions
Conditions were reported to be relatively stable, credited to the moratorium on evictions and late fees currently in place. As a whole, the region reported that 83% of all renter households are up to date on rent compared to 81% nationally. Compared to Q4 2019, vacancy rates declined, and average monthly rent increased in all major metropolitan areas except for Boston, MA, which decreased by 6%, and Bridgeport, CT, which stayed stable. Permitting declined in the region as a whole due to Connecticut experiencing a 73% decline in permits extended compared to Q4 2019.
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