Housing Permits in April at Their Highest Level Since 2006, Fueled by Low Inventory of Existing Homes

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Housing permits in April were at the highest level they had been since April 2006, according to a report released today by the Home Builders Association of Southeastern Michigan in Farmington Hills.

A total of 496 single-family permits were issued in Macomb, Oakland, St. Clair, and Wayne counties in April, up 5 percent from March (473) and 13 percent from a year ago (441). This brings the year-to-date total to 1,521, for the second-best start to a year since 2006.

“To see that kind of activity really portends a strong new-home construction season all through the summer,” says Michael Stoskopf, CEO of the Home Builders Association of Southeastern Michigan.

Going back to April 2006, a total of 655 single-family permits were issued. The results for April 2018 reflect burgeoning demand for new home construction and permits coming through that were likely delayed due to bad weather conditions at the beginning of 2018.

In turn, the 508 multi-family rental unit construction permits issued thus far (1,340) mark the fastest pace to start a year since 1998.

Demand for newly constructed homes is expected to remain strong throughout the year. Existing home inventories remain historically low, while the number of people employed in the area is growing.

The regular average single-family home sale price has increased 5.2 percent from a month ago to $222,245, while the average new single-family permit value has increased 13.9 percent from a month ago to $281,994.

During the same period, North American vehicle production has decreased 9.5 percent from a month ago, while the crude oil price per barrel has increased 33.9 percent from a year ago.

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