Fewer residential building permits issued in Des Moines area in first half of 2022
BUSINESS RECORD STAFF Jul 27, 2022 | 7:51 pm
1 min read time313 wordsAll Latest News, Real Estate & Development
The number of residential building permits issued by Des Moines-area communities in the first six months of 2022 totaled 1,966, 20% fewer than the 2,487 issued in the same period in 2021. To view a breakdown by community, click here.
Des Moines-area communities issued 1,966 building permits for new residential construction in the first six months of 2022, 20% fewer than the 2,487 issued during the same period in 2021, a review shows.
The decrease in housing builds comes as interest rates continue to inch upward; bottlenecks in the supply chain persist; and the cost of building materials climb.
The drop in housing starts is occurring nationally as well. In June, there were 982,000 single-family housing starts, the lowest number of starts since June 2020, according to the National Association of Home Builders.
“Single-family starts are retreating on higher construction costs and interest rates, and this decline is reflected in our latest builder surveys, which show a steep drop in builder sentiment for the single-family market,” Jerry Konter, chairman of the national association, said in a prepared statement. “Builders are reporting weakening traffic as housing affordability declines.”
The Business Record survey of residential building permits issued in 13 area communities and Polk County found that:
- 296 permits were issued in June, 124 fewer than the 420 issued in June 2021.
- Clive, Johnston and West Des Moines have issued more residential building permits in the first half of 2022 than they did in the same period in 2021.
- Ankeny and Waukee saw the biggest drop in the number of permits issued in 2022 compared with 2021. Both have issued 128 fewer new residential permits.
- The average value of a residential permit issued in June was $295,593, 8.5% more than the June 2021 average value of $271,562.
To view a breakdown by community of new residential permits and their value, click here.