Housing construction in Bacău County reflects a mix of stagnation and dynamism, with significant differences between rural and urban areas, as well as between completed homes and those authorized for construction. An analysis of data from January 1 to September 30, 2024, and up to October 31, 2024, reveals mixed trends, suggesting short-term challenges and long-term opportunities.
Completed Homes: A Worrying Decline
In the first nine months of 2024, only 467 homes were completed and put into use in Bacău County, including 75 in urban areas and 392 in rural areas. This represents a significant drop of 210 homes compared to the same period in 2023.
This decline is entirely attributed to homes built with private funds, as no homes financed by legal entities, government subsidies, or other mechanisms like mortgage loans were completed. This highlights a sole reliance on individual investments and a lack of involvement from the public sector or private developers in delivering new housing.
Homes Under Construction: A Promising Volume
As of September 30, 2024, there were 2,931 homes under construction, with the overwhelming majority (2,919) funded by private individuals, and only 12 from other sources. While the completion of homes has slowed, this significant number of ongoing projects could lead to future deliveries if economic and logistical conditions remain favorable.
Building Permits: A Decline Compared to 2023
The number of building permits issued for residential buildings, a key indicator of future housing supply, decreased by 8.2% between January 1 and October 31, 2024, compared to the same period in 2023, totaling 763 permits. Of these, 73.4% were issued for rural areas and only 26.6% for urban areas, reflecting a clear preference for housing construction in rural zones.
In October 2024, the decline in permits was even more pronounced, with a drop of 10.6% compared to October 2023 and 12.6% compared to the previous month, September 2024. This suggests a slowdown in the initiation of new projects, potentially due to rising construction material costs, limited access to financing, or other economic constraints.
Authorized Housing Units: A Marginal Overall Increase
Despite the decline in permits, the number of housing units authorized between January 1 and October 31, 2024, increased by 9.6% compared to the same period in 2023, reaching 1,028 units. This increase reflects a preference for larger housing projects or collective constructions in urban areas.
However, the sharp drop of 47.3% in the number of authorized units in October 2024 compared to September 2024 underscores significant volatility in the sector.
Conclusions and Long-Term Trends
The data analysis highlights two main trends:
- Short-Term Decline: The drop in completed homes and issued permits indicates economic and administrative challenges affecting the construction sector.
- Long-Term Potential: The high number of homes under construction and the marginal increase in authorized units suggest a potential recovery in housing deliveries in the coming years, driven by sustained interest in construction.
While most investments come from rural areas, urban dynamism is becoming increasingly visible, accounting for nearly 44% of the total number of authorized housing units. However, the lack of involvement from public institutions or private developers represents a missed opportunity to support more sustainable and diversified market growth.
To stimulate housing construction, policies are needed to facilitate access to financing, encourage public and private investments, and reduce the high costs of construction materials.
