October reports from Leon County government and the City of Tallahassee show the value of Leon county single-family new construction permits issued over the last 12-months was $109.0 million. The is 0.17% above the 12-month value reported in September and 12.7% above the $96.75 million reported in October 2015.
The New Construction Report shows the number of permits also increased when compared to 2015. Over the last 12 months, 537 single-family new construction permits have been issued. This up from the 469 permits issued one year ago.
How do these numbers compare to pre-recession levels?
The annual average number of new single family homes constructed for the ten years before the recession was approximately 1,200.
While current trends reveal significant increases over the last five years, the 535 single family permits issued over the last 12 months is approximately 40% of pre-recession levels.
The chart below shows the annual value of single-family construction permits issued for the previous 12-months. New construction experienced a growth trend from November 2015 to April 2016. Since that time, the value of permits decreased through the summer and has rebounded over the last three months.
The next six months will tell if the new construction trends will match the 10% growth experienced during this same period last year.
Who is buying all this stuff? Between apartments and single-family homes, it just has exploded. It seems like no one can get enough of building things around here. I would like to know what the absorption rate is on residential. Commercial seems even worse though. Look around at the available commercial condo space available for lease, it’s ridiculous and there seems to be no end to the construction of it. Go drive through the new Tallahassee Mall/Centre of Tallahassee. If that project is at or near 25% occupancy, then I would be shocked. Brick and mortar is becoming a dinosaur – ecommerce is here and killing physical locations (restaurants largely excluded), and it doesn’t seem as though that reality has set in. That’s the extent of my rant for the week.