Number of Metro Detroit Home Permits Issued in 2021 Surpasses Last Two Years

Based on residential permit data compiled by the Home Builders Association of Southeastern Michigan (HBA) in Bingham Farms and reported in the HBA/Carter Lumber Southeastern Michigan Residential Building Activity Report, total home permits in 2021 surpassed the previous two years.
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Close up of the front door entrance to a large two story blue gray house with wood and vinyl siding and a large American flag.
According the HBA/Carter Lumber Southeastern Michigan Residential Building Activity Report, 2021 single-family permits surpassed both 2019 and 2020 numbers. // Stock Photo

Based on residential permit data compiled by the Home Builders Association of Southeastern Michigan (HBA) in Bingham Farms and reported in the HBA/Carter Lumber Southeastern Michigan Residential Building Activity Report, total home permits in 2021 surpassed the previous two years.

“Overall, I would say that 2021 was very much a success regarding permits issued for both single-family and multi-family construction, particularly considering the supply chain issues that caused substantial cost increases throughout the year,” says Michael Stoskopf, HBA’s CEO.

A total of 4,659 permits were issued compared to 4,503 in 2019 and 4,206 in 2020. From a county perspective, Oakland finished with 1,978 followed by Macomb, with 1,397, Wayne with 1,099, and St. Clair with 185. The top five municipalities were Macomb Township with 388, Canton Township with 373, Shelby Township with 215, Chesterfield Township with 213, and Rochester Hills with 193.

The top three home builders in the four-county area were Pulte Homes with 542 permits, Lombardo Homes with (349), and M/I Homes of Michigan (299).

Multi-family construction permits totaled 2,037 for the year, which is more than 2020 (1,850), but less than 2019 (2,387). The top three multi-family builders were GCI Construction with 353 permits, Thompson Thrift Development with 304, and Barton Malow with 175.

For the first time in decades, all 4 counties saw multi-family permits issued, with Oakland again leading the way with 1,031. Next is Wayne with 552, Macomb with 310, and St. Clair with 144. The Top 5 municipalities were Rochester Hills with 463, Detroit with 391, Lyon Township with 304, Fort Gratiot with 144, and Auburn Hills with 121.

For December 2021, 231 single-family home permits were issued, ending the streak of 300 or more permits being issued at 18 months, which was the longest such streak since November 2006.

Economic indicators the organization uses to estimate future permits were mixed. Workforce remained stagnant, growing 0.2 percent month-over-month, and dropping 1.6 percent year-over-year. The number of employed people is up 4.7 percent over last year, but up only 0.9 percent month-over-month.

North American vehicle production remains down, dropping 11.9 percent month-over-month and 10 percent year-over-year. Crude oil price per barrel is showing signs of improvement, dropping 9.3 percent month-over-month. However, that price is still up 80.5 percent year-over-year.

The average single-family home sale price dropped 2.2 percent month-over-month and is up 7.5 percent year-over-year, while the permit value for such homes is down 12.1 percent month-over-month and 5.5 percent year-over-year.

“Looking forward, we are forecasting a similar result for 2022, anticipating continued supply chain impacts in the first part of the year, followed by the Fed’s expected increase in rates which will affect mortgage lending,” says Stoskopf.

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