Single-Family and Multi-family Permits rise significantly in 2015

Jan 07, 2016 at 09:25 am by Bryan Barrett


Single-family and multi-family permits rose significantly in 2015, a reflection of a healthy Murfreesboro economy and continued growth in housing. City officials expect the trend to continue in 2016 in one of the fast-growing cities in the U.S.

"Strong demand for new homes in Murfreesboro continued in 2015 at a level not seen since before the recession," said City Planning Director Gary Whitaker. "The pace of home building growth in Murfreesboro expanded significantly in the second half of the year and is expected to continue into 2016."

Final figures for 2015 released by the Murfreesboro Building & Codes Department indicate permitting for single-family detached units increased by 190 units in 2015 to 837 units compared to 647 units in 2014 and 589 units in 2013. The Building & Codes Department issued an average of 53.9 single-family detached permits per month in 2014 compared to an average 68.8 per month in 2015. A total of 451 single-family detached units were permitted in 2012.

While single-family building permits were higher in January of 2015 compared to the previous year, permits actually fell during the month of February due primarily to abnormally wintry weather. During the second half of 2015, however, single-family building permits rose significantly higher every month from May through December with the lone exception of September. For example, 86 permits were issued in November 2015, which more than doubled the 41 permits in 2014. 74 permits were issued in December 2015 compared to 40 in December 2014.

The increase in single-family building permits in 2015 resumes Murfreesboro's upward trend in housing growth.

A recent national survey of home builder sentiment remained positive in December 2015 at 57, the same sentiment level recorded in December 2014. A sentiment above 50 is considered positive. While the National Association of Home Builders (NAHB) survey indicated that builder confidence dropped 2 points to 60 in the South, Middle Tennessee builders are expected to remain confident in 2016.

Multi-family residential permits also continued to increase in Murfreesboro as builders seek to satisfy a growing demand for apartment dwelling by the younger millennial generation. Multi-family units permitted increased to 1,149 in 2015 from 913 units in 2014. 889 multi-family units were permitted in 2013, which almost doubled the 464 units permitted in 2012.

A tight supply of available lots for new homes continues. Lots Available for Construction in Murfreesboro dipped to just 748 at the end of 2015 from 826 in 2014, 984 in 2013, and 1,254 in 2012. That is far lower than the peak of 1,799 available lots in 2006 during the height of Murfreesboro's construction boom.

Commercial development in Murfreesboro also demonstrates higher growth in small business development in recent years. Both commercial permits and site plans continue to trend higher. New commercial permits continued to keep pace with a growing trend line last year, increasing to 40 in 2015 from 24 in 2014, 26 in 2013 and 17 in 2012.

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