New home starts in South County are down 10 percent compared to last
year, according to the latest figures from the Rhode Island Builders
Association.
The region logged 323 building permits issued during the first three
quarters of 2005, compared with 359 last year.
Statewide, new housing starts are down 9 percent this year, according to
the report.
Roger Warren, executive director of the Rhode Island Builders
Association, said the decline appears to stem from restrictions imposed
by cities and towns. In a period of low-interest rates and strong house
sales, it makes sense that land restrictions, large-lot zoning, building
permit caps and unrealistic impact fees are responsible for slowing
housing production, he said.
"There really isn't any other explanation that I can think of other than
outside activities created by the towns," he said.
South Kingstown leads South County in permits issued this year, with 73,
down from 83 last year. Westerly is next, with 50, followed by
Narragansett, with 46 and Charlestown, with 43.
Charlestown was the only South County town to show an increase during
the first three quarters of 2005, finishing three ahead of last year.
Warren said local leaders and the public need to understand that low
housing production fuels the state's record high housing prices, hurting
the economy as it makes it harder for people to own a home.
He was hopeful that the state's new affordable housing law, which is
supposed to encourage towns to plan for and welcome subsidized,
income-restricted housing, will help spark production. But he said any
impact won't be felt for a few years.
Community 2005 2004 Change
Charlestown 43 40 8%
Exeter 18 23 -22%
Hopkinton 26 26 0%
Narragansett 46 49 -6%
New Shoreham 7 11 -36%
North Kingstown 28 43 -35%
Richmond 32 32 0%
South Kingstown 73 83 -12%
Westerly 50 52 -4%
TOTAL 323 359 -10%
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