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New home construction increases 10%

Posted at 2:30 p.m. on Friday, January 22, 2021

The Brillion News

The latest single-housing permit numbers show that new home construction is up ten percent at the end of 2020 compared to the end of 2019.

The data, compiled by information required to be submitted by municipalities to the Department of Safety and Professional Services, shows 12,291 new home permits were issued across the state in 2020 compared to 11,207 in 2019.

Quarter four is down slightly compared to quarter three, with 3,392 permits issued in quarter four of 2020 and 3,825 permits issued in quarter three.

“We are thrilled with the yearly increase in building permits,” said Wisconsin Builders Association (WBA) Executive Director Brad Boycks. “Our industry is one that was not shut down in the early part of the year. The ability to continue building homes for people across the state was a significant factor in this great increase, and further helps the other industries impacted by home building.”

Other encouraging numbers, released by the Department of Administration, includes the numbers of plats and lots approved through December of 2020; 204 and 5,447, respectively. In 2019, there were 152 plats and 4,593 lots approved.

“Our members have continued to say how busy they are, and these numbers are proof of that. Business for the home building industry continues to trend upwards. While we are not yet at the over 17,000 permits issued in 2006, we are well above the 5,300 permits that were issued during home building’s lowest point of the recession,” said WBA President Jeff Dorner. “We are looking forward to another great year of building ahead.”

The one concern is the price of lumber.

Madison's Lumber Reporter noted that, compared to the price one year ago last week, benchmark Western softwood lumber item was 135 percent higher in price.

The report said that it was due to "unstoppable demand" for lumber.

Last week’s price was 52 percent higher than it was one month ago, the week prior to Christmas.



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