D.M. area sees drop in number of homebuilding permits issued
Homebuilding slowed slightly in the Des Moines area in April with nearly 9% fewer building permits issued than in March, a review of communities’ building permit records shows.
In April, 468 permits were issued for the construction of townhouses and single-family houses, 45 fewer than the 513 issued in March. The value of April’s permits was $133.4 million, down 5% from March when the value was $141.1 million.
However, while the number of permits and their overall value slipped, the average value of a residential building permit increased, a review of records shows.
In April, the average residential permit value was $285,149, up 3.6% from March’s $275,147. Since January, the average value of a residential permit has increased 11%.
The increase is likely due to increased demand for newly built houses and increasing costs of building materials, Kalen Ludwig, president of the Home Builders Association of Greater Des Moines, said at a recent panel discussion sponsored by the Business Record.
“Unfortunately, we are hearing that lumber prices will remain elevated through much of 2021,” Ludwig said during the forum. “Domestic production of lumber is increasing – and that’s good news – but it’s just not keeping pace with the demand that we’re currently seeing.
”To watch a video of Ludwig talking about the price of material, click here.