The first quarter was the third-best start for new housing permits in the area since 2006, according to a report released today compiled by the Home Builders Association of Southeastern Michigan in Farmington Hills, and reported in the HBA Southeastern Michigan Residential Building Activity Report.
A total of 438 single-family new housing permits were issued in Macomb, Oakland, St. Clair, and Wayne counties in March. This is up 40 percent from February and brings the year-to-date total to 976 permits, the third best pace since 2006.
Single-family permits are up 44 percent from 2015, when a similar weather pattern hit the area.
Multi-family rental unit construction has also increased, with 414 permits so far in 2018. More than half of the units are in Macomb County. This is the best start to a year since 1998.
Interest and demand for newly constructed homes remains strong, especially as existing home inventories remains at historic lows within the region. The growth in the number of people employed across the region has helped to drive this demand. This is the first year since 2006 that the model predicts six consecutive months of single-family permit activity exceeding 500 permits each month, beginning in May.
Average new single-family permit values have decreased 9 percent since last month and 14 percent since a year ago. The regular average single-family home sale prices have increased 3.5 percent from a month ago and 4.1 percent from a year ago.
To compare, employment and workforce rates have remained constant from a month and a year ago. North American vehicle production has increased 7.7 percent and 10.7 percent from a month ago and year ago, respectively. Crude oil prices have stayed consistent since last month but have increased by 30.8 percent from a year ago.