Murfreesboro single-family permits rose slightly in July, following a two-month dip in May and June. City officials believe a new building code enacted May 1, 2014, compelled builders to rush to obtain permits in April before the new code took effect.
“It appears there is strong demand for new homes in the community and that the homes for which those permits were issued have been constructed or are under construction,” said City Planning Director Joseph Aydelott. “It also appears that Murfreesboro is approaching a shortage of building lots as the number of lots available for construction is now at a 20-year low.”
Numbers released by the Murfreesboro Building & Codes Department indicate permitting for single-family detached units increased 2 units to 48 units compared to 46 in July 2013. In 2013, the Building & Codes Department issued an average of 49.1 single-family permits per month compared to an average 58.9 per month so far in 2014. A total of 589 units were permitted in all of 2013 compared to 451 in 2012.
The increase in single-family building permits resumes an upward trend in growth seen in the first quarter of 2014. Permits trended higher in the period of January to March of 2014 compared to the same period in 2013. The increase in Murfreesboro occurred despite frigid weather that dampened home building activity in much of the nation. The code-induced rush for permits produced an increase of 68 permits from 55 in April 2013 to 123 in April of this year. April was followed by a dip in May from 74 in 2013 to just 26 this year. There was another slight dip in June from 54 last year to 50 this year before the rise in activity last month.
The number of Lots approved on final plats in Murfreesboro reached a high-point of 2,167 in 2005 during the housing boom prior to the Great Recession. From 2006 to 2010, the number of approved lots dipped from 1,838 in 2006 to just 181 in 2010. Since 2010 subdivision developmenthas resumed an upward trend with 619 lots approved in 2013, but nowhere near the number witnessed during the boom years of 2003-2006. Based upon current trends, City Planning officials expect single-family building permits to increase throughout the remainder of 2014.
Multi-family unit permits are also expected to continue an upward trend. In 2013, Multi-family Units permitted more than doubled to 889 units from 464 units in 2012. In 2014, the months of January and February alone produced 553 additional Multi-family units. Most of this multi-family growth is occurring along the Medical Center Parkway corridor and in West Murfreesboro.
A tight supply of available lots and new homes has been boosting residential development in Murfreesboro. Lots Available for Construction in Murfreesboro dipped from 1,254 in 2012 to984 in 2013 and the inventory of available lots this year is only around 735. That is far lower than the peak of 1,799 available lots in 2006.
Commercial development in Murfreesboro also reflects higher growth in recent years. Both commercial permits and site plans have been trending higher. New commercial permits increased from 17 in 2012 to 26 in 2013 and so far this year the pace of growth is continuing with 15 new commercial permits in the first seven months (January-July) of 2014. Thus, 2014 commercial growth appears to be keeping pace with the stepped-up growth witnessed in 2013.
Approved commercial site plans dipped to a low of just 50 in 2010 but have resumed a typical annual pace above 100 with 145 site plans in 2011, 119 in 2012 and 137 in 2013.