In the category of residential building permits, five of the Top 10 fastest-growing communities for 2015 in southeast Michigan are in Macomb County, though the county’s longtime economic development champion lost its No. 1 position.

According to the Southeast Michigan Council of Governments, the seven-county region posted 8,625 new residential building permits last year — a 7 percent increase over 2014. That represents $1.6 billion in new real estate values.

In a reflection of the changing dynamics between city and suburbs, Detroit was the top community in the region for total new housing units permitted for construction, with 913.

According to SEMCOG, Lyon Township in southwest Oakland County authorized the most single-family homes, 343. That broke Macomb Township’s reign as the fastest-growing community in the region from 1996-2014. The township, located in central Macomb County, was second last year with 300 home building permits.

The Macomb County communities in the Top 10 were Macomb, Shelby, Clinton and Washington townships, as well as the city of Sterling Heights.

While single-family home construction saw a 4 percent increase and condominium construction declined 4 percent in 2015, apartment construction increased 16 percent, continuing the trend that began in 2014. Of the 2,738 new multi-family units, Detroit had the most at 882.

“Detroit’s numbers are a testament to the renewed interest in living in or close to downtowns, especially by young professionals looking for an urban, walkable environment,” said SEMCOG Executive Director Kathleen Lomako.

The sharp increase in new apartment buildings is good news for low-income renters across the region who are paying inflated rates for housing.

SEMCOG officials said the demand for apartments continues to be fueled by low vacancy rates in existing apartments, gains in employment and households which creates a demand for rentals, and a preference among some groups such as recent college graduates, as well as those downsizing households who prefer the flexibility of renting over home ownership.

The slight increase in single-family home construction was due to several factors – low mortgage rates, an annual average unemployment rate of 5.9 percent in southeast Michigan, increased home sales of just under 5 percent, modest increases in construction costs, and lower than expected gas and oil prices.

Other highlights from SEMCOG’s report:

  • Six of the seven counties in the region experienced positive residential construction growth in 2015 compared to 2014. Oakland and Wayne Counties permitted the largest number of units in 2015 – 2,566 and 2,084 units respectively.
  • In 2015, single-family homes accounted for 60 percent of total permits issued; condominium units accounted for 8 percent; and new apartment units were 32 percent of the total (increasing its share from 27 percent in 2014).
  • Median reported construction value for single-family homes was $253,803 in 2015 (up from $230,700 in 2014). Total reported construction value for all residential units was $1.6 billion (up from $1.34 billion in 2014).
  • Some 5,775 units were demolished in 2015, with 81 percent of those occurring in the city of Detroit.

While almost all of the numbers for 2015 are positive, they still lag far behind the building activity of 2000 when suburban construction took off.

 

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