Michigan Building Permits and Demolitions, 1989-2009

Southeast Mich. construction permits in ’08 see sharpest decline in 50 years Christina Stolarz / The Detroit News It’s no surprise that the region’s housing market has taken a hit. But for the first time since 1981, the permits for new home construction were outstripped by the number of units torn down. On top of that, residential building permits in southeast Michigan fell for a fourth straight year in 2008 — the sharpest decline in more than 50 years, according to the Southeast Michigan Council of Governments. … “Until our economy turns around enough that we’re getting that existing housing off the market, it won’t be profitable for developers to build new housing,” SEMCOG Executive Director Paul Tait said. “But we really have hit the bottom. We’re not going to bounce back real quick, but in the next 18 months, we’re going to see significant improvement.” Only 3,074 residential building permits were issued in 2008, a 41 percent drop from 2007, said Janet Mocadlo, senior planning analyst for SEMCOG’s data center. The annual average was 20,000 permits until the new home construction decline began in 2005, she said. “This is the lowest it’s ever been,” Mocadlo said. “It’s obviously everyone losing their jobs, and right now, while we’re still suffering from the credit crunch, nobody can get a loan.” …

Demolitions outpace new home building

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