Residential building permits up 110% in Southeast Michigan

Residential building was up in 2010 in Southeast Michigan, according to a report released by the Southeast Michigan Council of Governments, SEMCOG.

Across the seven counties that make up Southeast Michigan a total of 3,357 residential building permits were issued in 2010, for a 110-percent increase from 2009.

The numbers were taken from the counties of Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, Wayne, and the city of Detroit.

"I think the amount of increase was a surprise and it's a good thing," says Janet Mocadlo, senior planning analyst for SEMCOG, "but we were at such rock bottom in 2009."

Single family homes made up 74 percent, or 2,489, of the permits issued and the median value of construction for single family homes was $218,079, according to SEMCOG. Permits were also issued for 374 condos and 494 apartments.

Detroit issued the most permits for new residential homes with 551. The second highest number of new residential permits was issued in Macomb Township, which had 329.

The increase can partly be attributed to builders charging less for new homes, attracting homebuyers who might have opted for an established home, Mocadlo says.

"The builders needed to get their inventory sold so new homes became more affordable," she says.

After Detroit and Macomb Township, the top communities for total permits issued were: Novi with 181, Clinton Township with 166, Shelby Township with 165, Lyon Township with 120, Northville Township with 117, Sterling Heights with 90, Pittsfield Township with 85, and Rochester Hills with 82.

The 110-percent jump isn't likely to be seen again next year, she says, and while the increase is something to be happy about it's likely a flash in the pan.

"It's good news, but it's certainly not anywhere near where we've been in past years," she says. "As far as overall we have to hope for a better recovery in 2012, 2013, but not much is going to happen in 2011."

Source: Janet Mocadlo, Senior Planning Analyst, Southeast Michigan Council of Governments
Writer: Kim North Shine