Even though the number of new home building permits in the St Louis area has been on the decline, they’re been on the increase in the midwest region of which St Louis is a part. As the chart below illustrates, for the 12-month period ended last month, there are been 2,850 building permits issued for new privately-owned housing units in the midwest region of the U.S. an increase of 3.6% from he prior 12-month period when there were 2,746 permits issued. For just the month of November 2022, there were 197 permits, down nearly 8% from November 2021 when 214 permits were issued.
New home construction starts on the rise as well…
Depicted also on the chart below is the number of new homes where construction has actually begun, referred to as “starts”. Â The number of starts always tends to be lower than the number of permits issued as there are many issues that could arise that would cause a home not to be built even though a permit was issued for it. Â One of those issues could be the developer or builder’s sentiment about the market which, if trending unfavorably, may cause the developer to postpone adding to inventory. Â However, even though we saw builder sentiment decline every month this year, the number of new home starts in the midwest region for the most recent 12-month period increased 5% from the prior 12-month period. Â There were 2,657 new home starts in the 12-month period ended last month compared with 2,523 starts during the prior 12-month period. Â For just November 2022, there were 215 starts, down just one from November 2021 when there were 216 starts.
Building Permits Issued and Starts for New Privately-Owned Housing Units In The Midwest
(click on chart for live, interactive chart)
