St Louis Area New Home Construction Continues To Decline In Most Areas

For the 12-month period ended April 30, 2019, there were building permits issued for 757 new homes in St Louis County, a decline of 22.80% from the prior 12-month period, according to the latest data from the St Louis HBA.  As the table below shows, St Charles County saw a decline of 6.38% during the same period. In February of this year, only two counties showed a downward trend in building permits, but in March that grew to 4 counties and for April, 5 of the 7 counties we are reporting on, show a decline in new home building permits. Warren County continues to show growth and an upward trend in new home construction with an increase of 20.07% in building permits during the most recent 12-month period from the prior 12-month period.

  

St Louis New Home Building Permits – April 2019

St Louis New Home Building Permits - April 2019

How long does it take to build a new home in St Louis?

St Louis Association of REALTORS past president, Dennis NormanWould you like to buy a new home in St Louis but not sure if you have the time to wait for one to be built?  Before the market crash there were plenty of “spec” homes (homes builder’s built on speculation, trusting a buyer would buy it after completed) for buyers to choose from but today there are not near as many being built (“build it and they will come” didn’t pan out so well for builders when the market crashed).

Nationally, according to 2012 data from the U.S. Census Bureau,  it takes about 6 months on average to build a new home from start to finish.  Spec homes take about 4.9 months and custom homes 7.3 months.  Here in St. Louis the time is a little shorter.  According to Jim Brennan, owner of McKelvey Homes, their average time to build a home overall is about 5 months, with spec homes taking about 4.5 months and custom homes about 6 months.

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