Jessica Mathews / news@whmi.com


The Southeast Michigan Council of Governments has released residential construction statistics for 2023.

The region finished 2023 with a total of 9,333 new residential building permits issued – a 9% decrease from 2022. SEMCOG's report, Residential Construction in Southeast Michigan 2023, shows that Single-family home permits decreased 13%, attached condominium construction fell 20%, and apartment construction fell 3%.

SEMCOG Executive Director Amy O'Leary said "Reliable data is one of the most essential tools we have to make sound planning decisions for our region. New construction for housing is one piece of the picture about housing choices being made in our region, and this data helps decision-makers understand and anticipate needs for transportation and other infrastructure investments".

Median reported construction value for new single-family homes in 2023 was $334,535 – marking a 4% decrease from 2022. Total reported construction for all residential units permitted was $2.3 (b) billion.

SEMCOG says high mortgage rates significantly deterred potential new construction home buyers from moving. The 30-year fixed mortgage rate was 6.81% in 2023. By comparison, the rate in 2021 was 2.96%.

On the builder's side, construction material prices for lumber, steel mill, ready-mix concrete, and gypsum have stabilized but remain historically high. Overall prices for construction materials increased 37% from 2019-2023. SEMCOG said the shortage of skilled labor also remains an issue - further complicating the ability to construct an attractive, affordable new home while still turning a profit.

The report shows Southeast Michigan has averaged just over 10,000 new residential units per year since 2014. Single-family home construction averaged 5,145 permits per year while condominium construction averaged just under 900 units. Apartments averaged almost 4,000 units.

Oakland County communities issued the largest number of new residential construction permits in 2023 with 2,589. Single-family home construction comprised nearly 58% of the permits issued.

Washtenaw County ranked second among counties with 2,329 new units permitted. New apartment units accounted for almost 73% of permits issued.

Livingston County had a total of 920 new residential units permitted in 2023, with a large share in apartment construction - 59% of the total.

Lyon Township held the top spot in the region for communities in single-family homes permitted with 225. Milford Township ranked 3rd with 147.

Hartland Township ranked in the top ten communities for total new units permitted, coming in at the 8th spot with 266.

The full report can be accessed in the provided link.

SEMCOG Photos:
Main - Dexter Condo Construction
Middle - Kensington Ridge development in Milford Township
Bottom - Apartment Construction Genoa Township