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Greensboro Growth and Development Trends

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Greensboro Growth and Development Trends July 2012 Volume 1, Issue 1 “Promoting Quality Growth Throughout Greensboro” Department of Planning and Community Development (336)373-2144 300 W. Washington St. www.greensboro-nc/pcd Greensboro, NC 27402 Features… Director’s Notes The Spotlight this Quarter is TRC. Check it out on Page 5. “Good plans shape good quarterly reports on different to find the more detailed development topics. This information from the initial decisions. That's why good Downtown Development is quarter our focus is on trends study, you may find planning helps to make something very basic; where this at www.greensboro- going strong! Read about it elusive dreams come true.” people live. nc.gov/PCD under the on page 6. Data and Analysis tab. If Approximately 270,000 call you have ideas on - Lester Robert Bittel, writer Did you know the City helps Greensboro home in a development topics you variety of housing and would like to see covered, market lots and properties? Welcome to the first edition community types from please contact Karen See page 7 for details. of Development Trends downtown condominiums to Markovics at Quarterly! historic neighborhoods to Karen.markovics@greensbo traditional subdivisions. ro-nc.gov or call In January 2012, Planning Being able to provide quality 336.373.2144. and Community housing choices is a key Development released The ingredient in Greensboro’s Growth and Development Sue Schwartz, FAICP, growth. Trends Report that provided Planning and Community a snapshot of where Development Director We hope you find this Greensboro is today as information useful, compared to a decade ago. interesting, thought provoking. If you would like Our intention is to produce Change Reflected in Housing Market Over the past decade, slightly in April 2012 versus this compact development Greensboro has mirrored time last year; however, closer to amenities, a demographic and economic national sales were up 3.4%. greater demand for rental trends seen across the nation. housing, and housing that These changes often affect Multi-family Housing meets the needs of multiple how and where we live. The recent surge in multi- generations living under one family housing construction roof. These trends are As the country emerges from reflects changes both in the emerging in downtown the recession, what changes population, as well as in the Greensboro. Read page 6 will Greensboro see in the economy. for the scoop on downtown housing market? development. According to The Business Contents Increased Permit Activity Journal, multifamily housing is All development begins with Throughout the United States the “darling” of commercial a plan. The Spotlight story Permit Data 2 and in Greensboro, residential lending, with at least $443.5 this quarter is on the construction plummeted after million in apartment work Technical Review 2007. Building permit data for Committee (TRC). TRC is Spotlight Story 5 proposed or started in 2012 indicates stronger Greensboro over the past 15 typically the first stop for activity this year over last year. months. This new commercial and residential Inside Story 6 See pages 2 and 3 for development is expected to development in highlights of residential permit satisfy pent up demand for Greensboro. TRC activity for Properties for Sale 7 data. rental housing. Page 4 the first four months of 2012 highlights recent multifamily has steadily increased and is News and Events 8 Market Trends projects in our community. a promising sign for future Trends for existing home sales economic growth in About PCD 8 are difficult to pinpoint on a Future Development Greensboro. See page 5 for monthly basis. Sales of existing Nationally, trends indicate a the Spotlight story. homes in Greensboro fell preference for more National Permit and Market Data BUILDING PERMITS NEW HOUSING PROFILE represents a 6.6-month supply at the current sales Building permits authorized pace, up from a 6.2-month in April 2012 were 7.0 % In 2011 the average single- supply in March. below the March rate, but family house completed was 2,480 square feet. In are 23.7 % above the April Listed inventory is 20.6 % 2011 estimate. 2010, the average single- family house was 2,392 below a year ago when there was a 9.1-month square feet. Single-family building permits supply; the record for unsold authorized in April 2012 were inventory was 4.04 million in Nationally, the average 1.9 % above the March July 2007 figure. sales price of new single- family homes sold was The national median Buildings with 5 or more units $267,900. The average sales existing-home price for all represented 30% of the price was $272,900 in 2010, housing types jumped 10.1 % authorized building permits $270,900 in 2009 and to $177,400 in April from a in April 2012. $292,600 in 2008. year ago; the March price showed an upwardly revised The number of building The average price per 3.1 % annual improvement. permits issued nationally square foot for new single- declined 55% from 2007 to family homes sold was 2011. $83.38. Distressed homes – foreclosures and short sales HOUSING STARTS Regionally, the average sold at deep discounts – price per square foot $76.73 accounted for 28 % of April Housing starts in April were in the South. sales (17 % were foreclosures 2.6 % above the March and 11 % were short sales), estimate and 29.9 % above Source: US Census down from 29 % in March the April 2011 rate. Bureau 2011Housing and 37 % in April 2011. Characteristics Single-family housing starts in Foreclosures sold for an April were 2.3% above the average discount of 21 % EXISTING HOME SALES, UP March figure. below market value in April, while short sales were Buildings with 5 or more units Total existing-home sales discounted 14 %. represented 30% of the increased 3.4 % to a housing starts in April 2012. seasonally adjusted annual In the South, existing-home rate of 4.62 million in April sales rose 3.5 % to an annual HOUSING COMPLETIONS from a downwardly revised level of 1.79 million in April 4.47 million in March, and and are 6.5 percent higher Housing completions in April are 10.0 % higher than the than a year ago. The were 10.0 % above the 4.20 million-unit level in April median price in the South March estimate and 20.1% 2011. was $153,400, up 8.0 % from above the April 2011. April 2011. Total housing inventory at Single-family housing the end of April rose 9.5 % to completions in April were 2.54 million existing homes Source: National Association 11.4 % above the March available for sale, a of Realtors, April 2012 figure. Buildings with 5 or seasonal increase which more units represented 24% of housing completions in Housing Profile USA GREENSBORO April 2012. Owner Occupied Home 67% 54% Source: U.S. Census Bureau Median Home Value $185,400 $142,400 and the Department of Housing and Urban Average Home Value $265,747 $187,909 Development Renter Occupied Homes 33% 46% Notes: Numbers reflect Median Contract Rent $675 $605 permits for privately owned Average Contract Rent $772 $626 projects only. Source: American Community Survey 3 Local Permit Data GREENSBORO townhomes, duplexes, and condos but excluding The first quarter of 2012 apartments, fell sharply in brings renewed optimism 2009 to 16% after that the downward trend in accounting for nearly one- new residential construction third of the residential new permits reversed with 83 construction building permits permits issued January – April issued for the preceding 5 this year compared to 88 years. issued for the same time period last year. This comes As a share of all residential after the number of new building permits, permits residential construction issued for alterations, permits plummeted by 84% renovations, and repairs between 2005 and 2011. have steadily increased from 25.5% in 2007 to 43.1% The average building value in 2011, which may be an owners have chosen to far this year over last year increased to $210,000 in 2012 indication that property remodel and renovate and the ten-county from an average of $150,000 rather than relocate and Asheville area is up 10.6%. for the preceding 5 years; build in a soft housing however, it is unlikely that this market. For the five-county Triad represents a trend, but rather region, the first quarter of a reflection of the wide Although apartments are 2012 (January –March) range of building values considered commercial, showed a modest growth in ($66,000 - $575,000). when reviewed with all residential building permits residential permit data, of 1.7% over fourth quarter The time period between slightly more than one-third 2011 and an increase of receiving a building permit of permits issued in 2011 6.5% when compared to the and project completion were for apartments. The first quarter of 2011. Within averages 5.7 months for a general trend indicates the Triad, the larger counties new single family home and growth in apartment of Guilford and Forsyth 7.6 months for all residential construction. Additional contribute to two-thirds of construction combined. details regarding local all residential building Approximately 12% of apartment construction can permits issued. permits issued since 2007 be found on the following have not yet been page. All four regions experienced completed. significant declines in REGIONAL residential building permit Permits for multifamily activity after 2007; however, construction, such as Across the state, the 9- the Triangle area showed county metro Charlotte the quickest turnaround by area residential building stabilizing the rate of permits are up 38.8% versus decline in 2008, whereas it the first quarter of 2011, took an additional year or likewise the 8-country two for other regions to level Triangle area has off.
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