Builders League of South Jersey Responds to Slump in Housing Starts in New Jersey.

Business Editors

CHERRY HILL TOWNSHIP, N.J.--(BUSINESS WIRE)--April 17, 2003

With declines in new home construction down drastically for the third month in a row, the Builders League of South Jersey is concerned that the lack of availability will exacerbate the existing housing crisis in New Jersey.

"As residents of this state, we must recognize that more than one million households already suffer in silence, living a quiet crisis of not being able to afford a safe, healthful place to live," said Richard S. VanOsten, Executive Vice President of the Builders League of South Jersey. "Those who can afford a home squeeze in the door and those who can not scramble for whatever they can get.

"While the nation has seen a housing boom throughout the last year that has boosted the economy, new home construction in New Jersey has consistently declined. If we can't provide for the people who are already living here, there is no hope that we will be allowed to provide adequate housing for all residents in the future."

The U.S. Census Bureau reported yesterday that, while housing starts were down by seven percent nationally in March, construction of new homes in the Northeast took a 12.4 percent nosedive during the same period. Those figures capped a double-digit decline in the construction of new homes in the Northeast throughout the first quarter of this year.

Housing starts fell by 11 percent in January and more than 18 percent in February, according to Census figures.

In South Jersey, the lack of availability will drastically affect affordability, particularly for middle-income families. With an average annual household income of approximately $47,317, the American dream of homeownership is simply out of reach for most South Jersey residents.

"If we are to meet the needs of our current population and balance our future growth, we need to construct a minimum of 50,000 new homes a year in New Jersey. That would begin to make a dent in the housing crisis that we see magnifying each month," said Builders League of South Jersey President John Hooper. "There has to be a variety of the types of homes built to meet the market demand. Municipal and state government simply cannot continue to zone for housing that only a small percentage of the population can actually afford."

ABOUT BLSJ: The Builders League of South Jersey is a housing industry trade association of 575 South Jersey-based member firms, including builders, developers, engineers, architects, suppliers, contractors, and other consulting professionals committed to providing safe, healthful housing for all New Jersey residents.

BLSJ members are dedicated to promoting balanced solutions to solving New Jersey's housing crisis while planning for preservation and environmental protection.

The BLSJ, which is composed of member firms from Burlington, Camden, Gloucester, Salem, Cumberland, Cape May and Atlantic counties, is an affiliate of the New Jersey Builders Association and the National Association of Home Builders. Home building is vital to the local and regional economies.

It generates substantial local economic activity, including new income and jobs for residents, and additional revenue for local governments.

For more information on the economic impact of housing in South Jersey, contact the BLSJ Office of Public Information at [phone].