Housing permits hit a new nadir last year as a plunging economy and the tough local permitting process combined to keep builders under wraps, according to an analysis of Census data by the Citizen’s Housing and Planning Association (CHAPA).

Only 7,260 new homes were permitted in Massachusetts last year, the fewest in the 51 years the Census has been recording the data, while applications were down 20 percent from 2010. Even compared to the housing bust of the early 90s, 2011’s numbers were shockingly low: In 1991, there were 12,672 permits issued, a 75 percent increase over 2011.   

Reviewing the numbers – which CHAPA termed "historically dreadful" – Karen Wiener, the group’s interim executive director, said in a statement "many working families and fixed-income seniors will struggle to afford to live in the commonwealth until local zoning and public investment pave the way for more housing available to these households."

Along with tough local zoning, cuts in federal housing funds for affordable housing received part of the blame for the dearth of development efforts over the last several years, the group said. CHAPA said it wants state planning and zoning laws to be updated to allow homebuilders speed up the permitting process and allow builders to build smaller homes and more multifamily housing.