NAHB tabulation of data from the Survey of Construction (SOC) indicates shares of new single-family homes built with private wells and individual septic systems increased in 2022, compared with the previous year. About 10% of new single-family homes started in 2022 were served by individual wells and 18% had private septic systems. These shares, however, vary widely across the nine Census divisions with the corresponding shares reaching 38% and 46% in New England – the highest occurrence rates in the nation.
The SOC classifies community or shared water supply/wells as public water rather than individual wells. Nationally, 10% of new single-family homes started in 2022 were served by individual wells, while most of new homes were served by public water systems, including community or shared water supply/wells.
In New England, where the median lot size is 2.5 times larger than the national median, 38% of new single-family homes were built with individual wells. The reliance on private wells was also relatively common in the East North Central division where nearly 25% of new single-family homes started in 2022 were built with individual wells. The Middle Atlantic division registered the third highest share of homes built with individual wells with the share of 15%. These three divisions and the South Atlantic division (12%) exceeded the national average of 10%.
In contrast, individual wells were almost non-existent in the East South Central and West South Central divisions where their shares were 1% and 2%, respectively.
Like public water/individual wells, sewage disposal systems are classified by public sewers (including community or shared sewage/septic systems) and individual septic systems. Nearly 82% of new single-family homes started in 2022 were serviced by public sewers. The share of new home built with individual septic systems increased from 16% in 2021 to 18% in 2022. The incidence of individual septic systems among new single-family starts varies by division.
In New England, about 46% of new single-family homes started in 2022 had private septic systems. Individual septic systems were also relatively common in the East South Central and the East North Central divisions, where 29% and 27% of homes started in 2022 had a private septic system, respectively. The share of individual septic systems in the South Atlantic division was 24%, above the national average of 18%. The shares of individual septic systems were below the national average in the Middle Atlantic (16%), West North Central (13%), Mountain (12%), West South Central (8%), and Pacific (7%) divisions.
Compared to the previous year, the share of new single-family homes built in 2022 with individual septic systems increased in six divisions, while the share decreased in the Pacific, West South Central and East South Central division. It is noticeable that in the Middle Atlantic division the share of individual septic systems increased from 11% in 2021 to 16% in 2022, while the share in the East South Central division decreased from 35% in 2021 to 29% in 2022.
Discover more from Eye On Housing
Subscribe to get the latest posts sent to your email.
For those considering construction in areas without access to municipal water and sewer services, this information becomes crucial in assessing the infrastructure requirements. It emphasizes the need for careful planning and potentially additional considerations when seeking construction loans. Individuals or developers aiming to build in such areas may need to factor in the costs associated with well and septic system installations, impacting the overall budget and, consequently, the financing sought through construction loans. Understanding these localized trends is essential for making informed decisions in the construction loan application process.