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Construction Permit Applications Up for April

Thinking of buying a newly constructed home? Call a Boston real estate lawyer first!

Here's the good news: According to CNN, new home construction is up. There has been a nationwide jump in new home construction for the month of April. These statistics are based on a government report released on Tuesday.

Specifically, new construction of single-family homes rose 10.2 percent. Single family homes are, as many Boston real estate attorneys would confirm, a key sector in the housing market.

Some economists are crediting the rise in construction to the Obama Administration's First Time Homebuyer Tax Credit. As a result, some fear that the rise in new home construction could be artificial and that the housing market may be unable to sustain the demand once the hype from the First Time Homebuyer Tax Credit dies down.

The tax credit has already expired so the results of the hype and hope caused by the tax credit remain to be measured.

One important indicator of future trends in housing construction is the number of applications for building permits. As many economists feared, the numbers of people who applied for building permits went down in April, which essentially signals a potential drop in future new construction projects.

While the scope of this article goes beyond building permits, the City of Boston requires building permits for all new construction in order to ensure that the new construction is compliant with the Massachusetts State Building Code and the City of Boston Zoning Code. I'll likely address the building permit process in a separate blog post.

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