Increase in Single-Family Home Permits Up 26% in May

994

DETROIT — Based on single-family new home permit data compiled by the Home Builders Association of Southeastern Michigan and reported in the Southeastern Michigan Residential Building Activity Report, a total of 543 single-family home permits were issued in Macomb, Oakland, St. Clair and Wayne counties in May.

Activity was 26 percent higher than April and was down only 1 percent from May 2013. Macomb County led the way with 240 single-family permits issued, rating as the highest single month for the county dating back to July 2006. Oakland County’s 218 permits were the fourth highest monthly total since July 2006. St. Clair County with 14 permits, equaling its best month since September 2008. The four-county total of 543 permits issued in May, besides May 2013 (551), was the largest single month since August 2006 (575).

From November 2013 through March, actual permits issued fell 453 permits short of the 1,669 forecast by the association’s econometric model, primarily due to harsher than normal weather conditions. During that time, the association postulated that the “lost” activity of those months would be recovered once the weather improved. So far through April and May, actual permits exceed the econometric forecast by 215 permits. Actual activity has now recovered approximately 47 percent of the permits originally forecast during the 5-month winter period.

The New Housing Permit Forecast projects a total of 2,675 permits will be issued in the 6-month, June-to-November, timeframe. This would be a 3 percent increase over the same timeframe in 2013 (2,590). Adding remaining pent-up winter demand, the 6-month forecast expands to 2,913 permits, or a 13 percent increase over the same 2013 timeframe.

Facebook Comments