Average value of residential building permits surpasses $330,000
Residential building permits valued at more than $127.1 million were issued in October by communities in the Des Moines area. To view a monthly breakdown of residential building permits issued by community and the value of the permits, click here.
The average value of a homebuilding permit issued in October in the Des Moines area was $338,119, the highest it’s been in 2021, a review of communities’ records shows.
October’s average residential permit value was 12.2% higher than September’s average value of $301,263.
As the cost to build new homes inches upward, fewer people can afford to purchase them, according to national experts.
The most recent National Association of Home Builders/Wells Fargo Housing Opportunity Index shows that 56.6% of new and existing houses sold in the third quarter of 2021 were affordable to families earning the U.S. median income of $79,900. The affordability level is the lowest it’s been since the first quarter of 2012. During the same period a year ago, 63.3% of new and existing homes sold were considered affordable.
The rising costs of new houses have been attributed to increased demand and higher costs for materials.
Overall, 376 building permits were issued for townhouses and single-family residences in 13 Des Moines-area communities and Polk County. In September, 402 permits were issued.