Apartment construction up 23% in metro Detroit

Southeast Michigan is seeing a swell in development, according to a new report by Southeast Michigan Council of Governments, which found that the region issued more than 11,000 building permits in 2017 — a 16% increase from the year prior.

The report, Residential Construction in Southeast Michigan, 2017, found that apartment construction was the most popular of permit types. The region saw a 23% increase in apartment construction from the year prior. Condominium construction increased by 14% and single-family construction increased by 13%.

While Oakland County saw the largest number of permits for units — 3,500 — the report noted that Detroit actually saw the biggest uptick for a city. Nearly 1,000 — 998 to be exact — new units were permitted in the city last year.

"Apartment construction is a desired housing choice for those wishing to move to urban environments or who cannot find an existing affordable starter home," the organization said in a press release about the rental permit trend.

As the Detroit Free Press reported earlier this month, a lack of starter homes is leaving first-time buyers in the lurch. Overall homebuilding for price points across Michigan remains well below historic levels.

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Last year, 6,271 permits were issued for single-family houses across Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne counties, according to a preliminary SEMCOG count. That was down from 16,471 permits in 2000.

The scarcity of new entry-level homes has led to tougher competition for existing, midpriced homes on the market. Or, as the SEMCOG report indicates, more people looking into rental units.

The report also noted that "credit issues such as large student loan debt are also pushing consumers to apartments."

Contact Allie Gross at aegross@freepress.com. Follow her on Twitter @allie_elisabeth