First Quarter Single Family Residential Permit Activity Reveals Strong Growth over 2020
|A recent home renovation in Fort Thomas, Kentucky.|
Does this story bring some value to you? Please consider a small donation to help fund our content. We rely solely on support from our advertising partners, providing our content for free. Any amount helps. Click here to donate!
Northern Kentucky is experiencing strong growth for residential single-family permits in this first quarter over 2020's first quarter, that according to a recent report published by the Building Industry Association of Northern Kentucky.
In that report it says that 63% growth is visible in the volume of residential single family building permits in Boone, Kenton, and Campbell, with an 83% surge in Boone County is most notable.
"We have not experienced this level of first quarter single family residential permit activity since 2007; on the cusp of the Great Recession,” said Brian Miller, Executive Vice President of the home building association.
Residential remodeling permitted activity is at an all-time high for the first Quarter.
The last three years' first quarters (Q1 2019-2021) equal that of first quarter permitted residential remodeling activity over the prior seven years (Q1 2012-2018), which more than doubles the amount of the prior ten years (Q1 2002-2011).
While increases are slowing for residential remodeling, Northern Kentucky has experienced a very prolonged period of increasing residential remodeling activity. It is important to note that this data only includes permitted activity and does not include do-it-yourself projects or smaller projects not requiring a permit said Miller.
He went on to say that, "Capital reinvestment projects continue to be higher than ten and twenty-year trailing averages." New commercial permit values continue to outpace capital reinvestment dollar figures, showing Northern Kentucky is still in a growth pattern for new projects in the area. The permits reveal a slowing of Amazon Prime International Air Hub related projects.
"Commercial and industrial projects can be far more sporadic than residential projects due to the number of them and the fact that there is no real “season” for peak activity, so we will continue to monitor this sector of our industry closely to see what the future may hold,” said Miller.
Northern Kentucky home buyers have noticed an increased pressure in their ability to find a home.
Miller said that the residential sector has been buoyed by low interest rates and a historically anemic existing market inventory, as well as societal changes amplified by the pandemic. Material cost increases are having a negative effect on builders’ ability to bring attainable priced homes to the market. Lumber alone has been the largest driver in cost increases. The average buyer in the local market is now paying an average of $26,000 more in lumber prices per home than they had just one year earlier, he said.
He went on to say that because the material and labor costs continue to impact the commercial/industrial sector of the industry and challenges remain regarding local decisions made by those in government that can "make or break significant economic development potential."
Just this week, as reported by Fort Thomas Matters, the Southgate City Council financed a $32-million portion of Memorial Point, the massive development that will be going in on the former Beverly Hills Supper Club land.