Des Moines area sees slowdown in new home construction
BUSINESS RECORD STAFF Oct 31, 2022 | 3:07 pm
1 min read time174 wordsAll Latest News, Real Estate & Development
In the first nine months of 2022, 2,692 permits for new home construction have been issued in the Des Moines area, 16% fewer than were issued during the same period in 2021, a review of communities’ building permit data shows.
The decline in new home construction was even more pronounced in September when 284 permits were issued, 47% fewer than the 402 issued in September 2021, the review found. The Business Record monthly reviews building permit data in Polk County and 13 communities.
The drop in new housing starts mirrors what is occurring nationally. Housing starts dropped 8.1% in September to a seasonally adjusted annual rate of 1.43 million units, the Census Bureau and the Department of Housing and Urban Development reported. The decline in new housing starts coincides with the rise in interest rates for home mortgages. Last week, the 30-year fixed mortgage rate averaged 7.08%, the highest in 20 years.
To view a spreadsheet of residential building permits issued by month in the Des Moines area in 2022, click here.