A group of Long Island home builders announced Wednesday that long delays in obtaining local permits and the cost of construction insurance are the biggest obstacles to building homes in the region.
The comments came as the Long Island Builders Institute, an Islandia-based trade group, released a report on the economic impact of home construction on Long Island’s economy.
The report found that nearly 20,000 people are directly employed by construction companies involved in the construction of single- and multi-family homes and home renovations. The analysis was conducted by Camoin Associates, a consulting firm that specializes in economic development and also performs other analyzes for local industrial development agencies.
In addition, the analysis estimated that 114,000 employees are employed in the construction industry, including contractors who perform concrete, framing, masonry, roofing, siding, plumbing, and many other tasks. Ta. The total also includes some workers at construction wholesalers, hardware stores and home improvement stores, as well as professionals such as lawyers, engineers, building inspectors and surveyors.
That figure represents more than 10% of the island’s workforce, according to state Department of Labor data.
The report also says the industry contributes more than $150 million to Long Island in sales, income and property taxes.
“What this industry means for Long Island,” Michael Florio, CEO of the Long Island Builders Institute, said Wednesday at an event in Farmingdale surrounded by local developers and construction industry leaders. I wanted to quantify what it means.” Other attendees at the event said the report could be used to show lawmakers why they shouldn’t introduce legislation that could hurt home builders. did.
A survey of Long Island residents last year found that residents want more affordable housing options, but not densely packed housing. Experts say a lack of housing construction over the past decade is one reason Long Island’s home prices have risen. The median home price across Long Island, excluding the East End, hit a record high of $700,000 in the third quarter, according to real estate brokerage Douglas Elliman and appraisal firm Miller Samuel.
Camoan researchers interviewed 15 local builders and identified five barriers to building on Long Island. Delays in approving zoning changes. Long wait times to get building permits. Community opposition to new development. Construction insurance fees will also be charged.
“Liability insurance here is higher than almost every other state,” Jonathan Weiss, president and president of construction for B2K Development, said at the event.
Those barriers are driving more developers to take on projects in other lower-cost states, Florio said.
“The process here is often too burdensome,” Florio said. “It costs too much, it takes too long. (Developers) could go to North Carolina or South Carolina and find properties and build and complete them in a much shorter period of time and at a much lower cost. .”
He later added: “If the community comes to us and says, ‘We want you to come here, and we’re happy to do that,'” he added. That would be an easier process. ”
Anthony Burton, managing partner of Terwilliger & Burton Properties in Farmingdale, said these barriers are preventing young people on Long Island from getting decent housing options.
“Our schools are great, right? We’re making investments and we’re not capitalizing on that investment because the next generation is leaving,” Barton said. “Why are they leaving? They have no place to live.”
The report calculates not only the revenue generated by employed workers, construction companies and supporting industries, but also the economic impact resulting from spending by employees and employees of other non-construction suppliers, and calculates the economic impact of the industry. It looks at the impact more broadly. .
To put this into perspective, the industry has $41.7 billion in sales, or 9 percent of Long Island’s overall economy, according to the report. Construction companies and other companies that support their work generated $24.8 billion in revenue, the report said.
The builder unveiled the report at a new 12-unit apartment complex on Conklin Street in Farmingdale. The Enclave has all two-bedroom, two-bathroom units with backyard space, with rents ranging from $3,650 to $4,000, said Grant Havasy, president of Huntington developer Blue & Gold Homes. .
Havasy told Newsday the developer needs the rent to recoup construction costs, which increased by about 50% compared to the project completed in 2018. This is due not only to rising labor and material costs, but also to rising construction insurance prices.
Without that level of rent, Havasy said, a few expensive maintenance requests could wipe out the profit on an individual unit.
“We always have to keep moving to the next (price) level,” Havasy said. “This is $3,650 to $4,000.I hope this is $3,650 to $3,650 because we know the rentals will be faster and more people will qualify. ”
A group of Long Island home builders announced Wednesday that long delays in obtaining local permits and the cost of construction insurance are the biggest obstacles to building homes in the region.
The comments came as the Long Island Builders Institute, an Islandia-based trade group, released a report on the economic impact of home construction on Long Island’s economy.
The report found that nearly 20,000 people are directly employed by construction companies involved in the construction of single- and multi-family homes and home renovations. The analysis was conducted by Camoin Associates, a consulting firm that specializes in economic development and also performs other analyzes for local industrial development agencies.
In addition, the analysis estimated that 114,000 employees are employed in the construction industry, including contractors who perform concrete, framing, masonry, roofing, siding, plumbing, and many other tasks. Ta. The total also includes some workers at construction wholesalers, hardware stores and home improvement stores, as well as professionals such as lawyers, engineers, building inspectors and surveyors.
What I found on Newsday
An analysis of the economic impact of home builders on Long Island found that the industry and the companies that support it employ 114,000 workers. The Long Island Builders Association said it commissioned the report to demonstrate the importance of the homebuilding industry to the region. Builders interviewed in the report say delays in zoning approvals and rising construction insurance costs have made it difficult to operate on Long Island, and they are considering projects in other states. He said there are people.
That figure represents more than 10% of the island’s workforce, according to state Department of Labor data.
The report also says the industry contributes more than $150 million to Long Island in sales, income and property taxes.
“What this industry means for Long Island,” Michael Florio, CEO of the Long Island Builders Institute, said Wednesday at an event in Farmingdale surrounded by local developers and construction industry leaders. I wanted to quantify what it means.” Other attendees at the event said the report could be used to show lawmakers why they shouldn’t introduce legislation that could hurt home builders. did.
A survey of Long Island residents last year found that residents want more affordable housing options, but not densely packed housing. Experts say a lack of housing construction over the past decade is one reason Long Island’s home prices have risen. The median home price across Long Island, excluding the East End, hit a record high of $700,000 in the third quarter, according to real estate brokerage Douglas Elliman and appraisal firm Miller Samuel.
top obstacles
Camoan researchers interviewed 15 local builders and identified five barriers to building on Long Island. Delays in approving zoning changes. Long wait times to get building permits. Community opposition to new development. Construction insurance fees will also be charged.
“Liability insurance here is higher than almost every other state,” Jonathan Weiss, president and president of construction for B2K Development, said at the event.
Those barriers are driving more developers to take on projects in other lower-cost states, Florio said.
“The process here is often too burdensome,” Florio said. “It costs too much, it takes too long.[Developers]could go to North Carolina or South Carolina and find properties and build and complete them in a much shorter period of time and at a much lower cost. Dew.”
He later added: “If the community comes to us and says, ‘We want you to come here, and we’re happy to do that,'” he added. That would be an easier process. ”
Anthony Burton, managing partner of Terwilliger & Burton Properties in Farmingdale, said these barriers are preventing young people on Long Island from getting decent housing options.
“Our schools are great. We’re making investments and we’re not capitalizing on that investment because the next generation is leaving,” Barton said. “Why are they leaving? They have no place to live.”
The report calculates not only the revenue generated by employed workers, construction companies and supporting industries, but also the economic impact resulting from spending by employees and employees of other non-construction suppliers, and calculates the economic impact of the industry. It looks at the impact more broadly. .
To put this into perspective, the industry has $41.7 billion in sales, or 9 percent of Long Island’s overall economy, according to the report. Construction companies and other companies that support their work generated $24.8 billion in revenue, the report said.
The builder unveiled the report at a new 12-unit apartment complex on Conklin Street in Farmingdale. The Enclave has all two-bedroom, two-bathroom units with backyard space, with rents ranging from $3,650 to $4,000, said Grant Havasy, president of Huntington developer Blue & Gold Homes. .
Havasy told Newsday the developer needs the rent to recoup construction costs, which increased by about 50% compared to the project completed in 2018. This is due not only to rising labor and material costs, but also to rising construction insurance prices.
Without that level of rent, Havasy said, a few expensive maintenance requests could wipe out the profit on an individual unit.
“We always have to keep moving to the next (price) level,” Havasy said. “This is $3,650 to $4,000.I hope this is $3,650 to $3,650 because we know the rentals will be faster and more people will qualify. ”
Jonathan LaMantia covers Long Island residential real estate and other business news. He previously ran the healthcare business for Crain’s New York business.
