Springfield, September 25, 2025
News Summary
Springfield is struggling with a housing shortage as new construction slows and costs rise. With only 129 new residential permits issued recently, the city’s housing market is under increasing strain due to a growing population and declining household sizes. Economic experts suggest a national shortfall of 5 million housing units. Labor and material costs are soaring, further impacting affordability. Springfield’s development code is being updated to encourage diverse housing options, but significant measures are needed to address these challenges and improve the housing landscape in the city.
Springfield Faces Housing Shortage Amid Slow Construction and Rising Costs
Springfield, along with many other cities across the U.S., is currently grappling with a significant housing shortage. This issue has become a focal point in Planning & Zoning meetings and City Council discussions, highlighting the urgent need for a viable solution to the growing crisis. In 2024, only 129 permits were issued for new residential builds in Springfield, a figure that mirrors the pre-pandemic levels but remains drastically lower than the numbers seen prior to the Great Recession (2007-2009).
The city has experienced steady population growth over the past 20 years. However, the construction of new houses has slowed down across the nation, particularly after the subprime mortgage crisis, which has left many regions struggling to recover. For the last two decades, an average of about 1.5 million new homes has been constructed annually in the U.S., yet this number is not keeping pace with the ongoing population growth. Consequently, this disparity is exerting significant strain on the housing market.
A long-term trend of decreasing household sizes is contributing to the increasing demand for more housing units. More individuals are choosing to live alone or postponing family life, thus exacerbating the housing needs. According to estimates from the Chief Economist at Commerce Bank, there is a predicted shortfall of 5 million housing units nationwide.
In Springfield, the Home Builders Association of Greater Springfield notes a 13% drop in building permits for single-family homes as of July 2025. This decline contrasts with a 6% national fall and a 4% statewide drop. Interestingly, permits for multi-family housing in Springfield have risen by over 30% year-to-date, despite an overall decline in housing permits.
Beyond the numbers, the construction industry is dealing with a tightening workforce, which is affecting the pace and volume of completed projects. The number of younger individuals entering the trades is insufficient, as many older contractors are retiring. Educational programs and grants are being introduced to encourage newcomers into the construction sector.
In addition to workforce issues, the costs of both labor and materials remain elevated since the pandemic, compounded by economic uncertainties from shifting tariffs. Housing affordability has hit an all-time low; since the pandemic, both housing prices and mortgage rates have doubled, while wages have not kept pace, making it increasingly difficult for families in Springfield to secure homes.
The median new home price in Springfield stands at approximately $417,500, rendering it unaffordable for over 84% of the households in the area. Notably, for each $1,000 increase in housing prices, an additional 161 households find themselves priced out of the market.
Additionally, home turnover rates have shifted significantly, with homeowners staying in their homes longer. The average turnover rate has risen from every seven years to every 14 years, which is further constraining the availability of homes. Although the Federal Reserve recently announced interest rate cuts, experts believe that larger actions are necessary for the housing market to see a genuine impact.
Springfield is experiencing a lack of available land for development. Many prospective buyers are eager to purchase homes but face challenges in locating suitable lots. New developments often emerge on the outskirts of city limits, encountering regulatory challenges and pushback from nearby residents.
In response to these challenges, Springfield is currently updating its development code to streamline processes and promote diverse housing construction. The new code is in a testing phase until 2026, and its effectiveness remains uncertain. Addressing the housing issues in Springfield will likely require a substantial turnover in the housing market, rather than relying solely on new construction.
FAQ
What is causing the housing shortage in Springfield?
Springfield is facing a housing shortage due to slow construction rates, rising costs, and a tightening workforce in the construction industry.
How many permits for new residential builds were issued in Springfield in 2024?
In 2024, Springfield issued only 129 permits for new residential builds.
What is the median new home price in Springfield currently?
The median new home price in Springfield is approximately $417,500.
What percentage of households can afford a new home in Springfield?
Over 84% of households in Springfield find the median new home price unaffordable.
Key Features of Springfield Housing Crisis
| Aspect | Details |
|---|---|
| Number of permits issued in 2024 | 129 |
| Percentage drop in single-family home permits | 13% |
| Median new home price | $417,500 |
| Percentage of households priced out | 84% |
| Average home turnover time | 14 years |
| Predicted national housing unit shortfall | 5 million |
| Yearly average of new homes constructed nationally | 1.5 million |
Deeper Dive: News & Info About This Topic
Additional Resources
- News Leader: Springfield Housing Construction Remains Slow
- Springfield News Sun: Springfield’s Housing Market Hurdles
- MassLive: Springfield Developer to Begin Construction on Home Development
- Wikipedia: Housing Crisis
- Google Search: Springfield Housing Market
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
