Monday, January 24, 2005

Anchorage New Home Construction Down 16%

New home permits issued by the Muncipality of Anchorage for 2004 dropped by 15.7% from the average of the previous four years. The permit valuation of all residential and commercial permit activity dropped 10.6% compared with 2003.

Single family home permits and duplexes totaled 1028 units for 2004, compared with 1309 for the prior year, a one-year decrease of 21.5%. The 2000-2003 four-year average was 1220 units. Site condos are mostly configured as duplexes and count in that total.

Meanwhile, in outlying areas like Eagle River, where only a land use permit is required, the past two years have seen a 38% increase in permits compared with the three prior years. Considering the land shortage in the Anchorage bowl, it makes sense that more homes are being built a little farther away.

The four-year average for multifamily units is 336, bolstered in part by the high of 622 units in 2003. Last year's total was 552, a one-year drop of 11.3%. Notwithstanding that one-year decline it's clear that apartments are under construction at a fair clip: in the last two years apartments were built at a rate this is double the average of the prior three years.

When you consider the economic activity associated with all residential and commercial building permit activity, however, the reports show an increase. The value of all permits last year was $649.4 million, 6.3% above the average of the previous four years.

These statistical report are found on the Municipality's web site at this address.

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