Housing starts at second-highest level through third quarter since 2006
At almost $907 million, the Home Builders Association of Fargo-Moorhead’s 2014 third-quarter building permit report for the Fargo-Moorhead metro area shows the highest overall permit values ever. This total is up over $383 million from last year and is nearly double that of the five-year average for construction activity through third quarter. Total permits and values include housing, multi-family, new commercial, residential and commercial remodeling, public, and miscellaneous categories.
Notably higher permit activity appears in the multi-family, row/town-house and new-commercial categories. Total housing starts and valuation remain on par with third quarter last year, and have posted the second-highest level since 2006.
For the F-M area as a whole, housing permits are down by 42 compared to third quarter last year, while row/town-house and multi-family construction have a record number of units. Row/town-house construction has more than doubled in units, and valuation has risen from $7 million to just under $18 million. Multi-family valuation has also seen a significant increase, up nearly $50 million. Though there were only nine more commercial construction permits taken out this year compared to 2013, the valuation of those permits has risen 150 percent, or by $168 million.
The Moorhead community has continued to see unprecedented growth since the recession, with single-family permits nearly doubled compared to this time last year. Moorhead experienced construction of its first row/town houses since 2011, with those 24 units adding $3.2 million to the overall valuation of construction in Moorhead. Overall housing numbers in Moorhead are up 49 percent and valuation is up over $11 million compared to third quarter last year.
continues to be strong, up 480 units with an 84 percent increase in valuation. New-commercial construction permit numbers are up by only four, however valuation of those projects has skyrocketed from $51.4 million to nearly $218 million. The building outlook remains strong in Fargo, with total permit numbers down just slightly, and valuation up 124 percent, or $350 million.
West Fargo’s total housing starts are up from third quarter last year in both permit numbers and valuation. Though single-family housing is down, twin-home and town-home construction saw significant increases. Multi-family housing construction values are up by over $11 million compared to this time last year. Overall building in West Fargo is strong, with a big bump in number of permits and a 30 percent increase in valuation.
HBA of F-M President Carlita Dietz, Jay Dietz Construction, Inc., says “The F-M community continues to see steady growth in total housing numbers and valuation. We continue to be restricted by the lack of permanent flood protection for the area, but we thank our elected officials who are working to make this a reality. Our builders have seen a busy summer, after a rainy spring, trying to keep up with the high demand for housing in a community with a growing population. We’re hoping for a late freeze so we can continue to get foundations poured and houses up.”
Each quarter, the HBA contracts with Fiebiger, Swanson, West & Co. to compile the building permits from Dilworth, Fargo, Moorhead and West Fargo into a uniform report for the industry’s and media’s use. It includes summaries for each city, types of construction, valuations and comparisons to the past four years, as well as comparisons to five-year and 20-year averages.
The HBA of F-M promotes an environment in which members and their businesses can prosper. It is a non-profit trade association of over 800 members that has been in existence since 1956. Its public events include the Spring Parade of Homes, Fall Parade of Homes, Remodeled Home Tour and Red River Valley Home & Garden Show.