Tri-Cities new home permits have positive short-term position

Tri-Cities new residential permits are slowly clawing their way out of the black hole of the Great Recession. But it has been a slow process.

New home construction – as measured by new permits – is positive on the short-term but performing at half its pre-recession capacity.

According to The Market Edge’s most current report, Tri-Cities permits during Q2 this year were the best since 2012 and was only two permits fewer than the 2011 total.  After that the spread increased.

When compared to a pre-recession benchmark of Q2 2008 new residential permits pulls were down by more than 50% in every county except Sullivan and Scott Co. VA.

Here’s what that comparison looks like:

  • Carter Co.  down 66.7%.
  • Greene Co. down 57.4%
  • Hawkins Co. down 70.6%
  • Sullivan Co. down 41.9%
  • Washington Co. TN down 50%
  • Scott Co. VA down 45.5%
  • Washington Co. VA down 68.4%
  • Tri-Cities – down 53.7%.

Here’s what the half-year 2015 v. 2008 comparison looks like:

  • Carter Co. down 73.2%
  • Greene Co. down 54.3%
  • Hawkins Co down 67.9
  • Sullivan Co. down 54.1%
  • Washington Co. TN down 49.1%
  • Scott Co. VA down 38.9%
  • Washington Co. VA down 66.7%
  • Tri-Cities down 55.7%
new homes

Total single-family residential permits for the first six months of each year.

Almost half of all single-family permits pulled so far this year were in Washington Co. TN – 43%.

Sullivan Co. accounted for a little more than 25% of all permits during the same period.

On a state regional basis new home permits in East Tennessee increased during the first six months of this year compared to last year.

Knoxville recorded a 29.2% increase while Chattanooga was up 17.4%.

The Tri-Cities had a 16% increase.

Washington Co. rules high-end ranking

In the high-end home category, Washington Co. saw 17 of the 35 regional high-end single-family residential permits during the first half of the year.

The Market Edge defines high-end as units that are over 4,000 sq. ft. or with a permit value of over $400,000.

So far this year, Knoxville is leading East Tennessee in this category with 129 permits.

Chattanooga has 31.

Here’s how the Tri-Cities drill down looks in this category for the first half of the year:

  • Washington Co. TN – 17
  • Washington Co. VA – 10
  • Greene Co. – 5
  • Sullivan  Co. – 3

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