The number of building permits in the Savannah area has been creeping up and is approaching more sustainable, pre-housing bubble levels, according to new data compiled by Armstrong Atlantic State University.
Permits for single family homes are now averaging more than 100 a month, said Michael Toma, professor of economics at Armstrong.
Toma, speaking Monday at a meeting of the Savannah area Home Builders Association, said this is a stark turnaround from mid 2010 to 2011 when permits averaged a paltry 60 per month.
“Where we’re getting to now is at the low end of the range in which we operated in that pre-boom period,” said Toma. “Now we’re getting back to where the normal was in the early 2000s.”
According to local construction permits, there were 104 single family home permits recorded in Bryan, Effingham and Chatham counties in February, about 10 more than last year, a 9.5 percent increase. About 27 permits were issued in the first week of March as well, on a par with February’s pace.
While the housing and construction sectors are seeing improvement, employment in construction has barely budged, according to Toma.
“While the housing market has started to improve over the last year, employment in that sector has barely wavered and is off by 100 to 200 jobs over the last year or so,” said Toma.
In one respect, that means workers are being more productive than they were in the past, said Toma, but there are other factors too, including the unusually harsh winter, which hurt building starts in January.
Immigration reform plays a role as well, and member Jerry Konter of Konter Quality Homes touched briefly on legislative efforts by the National Association of Home Builders to address this issue. Congress has so far failed to pass a comprehensive bill that would give undocumented immigrants guest worker permits.
Meanwhile, the Home Builders Association is seeing steady gains in its membership rolls, with three new members this month and nine the previous.
Candler Wilson of Beacon Builders said membership is at 364 for the year, about 30 more than year’s end.
Local HBA membership surpassed 950 before the downturn.
For more on Savannah-area economic trends, check Sunday’s Savannah Morning News for an in depth look at Michael Toma’s quarterly economic monitor.
BUILDING PERMITS
Single family home building permits by year in Bryan, Chatham and Effingham counties:
• 2009: 1,144
• 2010: 972
• 2011: 978
• 2012: 1,154
• 2013: 1,204
• 2014 (Jan. and Feb.): 183