So far this year, Tri-Cities new home construction is slogging along at about the same pace as last year and the year before. That’s not especially good news for a region where a tight housing market has the potential to become a housing shortage – especially in the $200,000 and below price ranges.
However, the region’s slow growth looks pretty strong when compared to other neighboring regions monitored by The Market Edge’s Residential Building Permit Trend Report.
The Tri-Cities year-to-date permit pulls are 21% better than they were during the first half of 2016 compared to 18% in the Knoxville region and 4% in Chattanooga. Local permit activity also outperformed the Asheville region (up 13%) and was only slightly behind the 28% increase in Boone, N.C.
Washington Co. TN continued its dominance in new home construction with 119 new permits in Q2 – 201 during the first half of the year.
Sullivan County had 64 new permits in Q2 and 129 since the first of the year.
Those two counties have a 65.6% share of all the new home construction in the seven-county region.
Compared to the first half of last year permit activity in both picked up since the first half of last year. But the increase is only by 78 new permits.
The region has seen a total of 267 new residential permits this year compared to 268 during the first half of last year.
Here the running total for 2017 by county compared to last year:
Carter – 56, up 14.
Greene – 52, down one.
Hawkins – 14 – up four.
Sullivan – 129, up 12.
Washington Co. TN – 210, up 63.
Scott Co. VA – 17, up two.
Washington Co. VA – 39 – down three.
Washington Co. TN also continued its dominance in the number of high-end residential permits.
The Market Edge defines a high-end permit as one with a construction value of $400,000 or more on a unit over 4,000 sq. ft.
So far 20 of those permits have been pulled in Washington Co. TN followed by 17 in Washington Co. VA.
Sullivan Co. had recorded nine high-end permits this year. Greene and Carter counties have seen four each.