Metro homebuilding permits rise 14% in ’16
Optimism carries over to new year
Permits to construct new homes in the metro Milwaukee area were issued at the fastest pace in nine years in 2016.
Officials in Milwaukee, Ozaukee, Washington and Waukesha counties distributed 1,381 homebuilding permits last year, up almost 14% from 1,213 in 2015, new statistics from MTD Marketing Services of Wisconsin Inc. show.
While the 2016 total still is less than half the number of permits seen during the height of the pre-recession building boom, the improvement was a welcome development for area builders after two consecutive relatively flat years.
“We’re feeling a lot more optimism and confidence from buyers as well as builders,” said Kristine Hillmer, executive director of the Metropolitan Builders Association. “There is just an increase in optimism on what’s happening. Now, it’s
cautious, of course, but we’re feeling pretty good about 2017.”
According to data from MTD, Menomonee Falls was the most popular municipality for building a new singlefamily home or duplex last year. There were 113 permits issued in Menomonee Falls. Other communities with the most permits to construct new homes included: Mequon, 83; Oconomowoc, 76; Waukesha, 75; Pewaukee, 72: Brookfield, 64; and Muskego, 64.
David Belman, president of Belman Homes, in Waukesha, said the market was helped last year by a good inventory of lots and a little easier access to financing for developers. He said low interest rates also aided the solid showing in 2016.
Belman predicted another good year ahead.
“I think we’ll have a better year in 2017. Although rates are ticking up, that provides some incentive for people not to wait any more,” Belman said. “But in addition, I think we’ll see some loosening of the lending policy with the new (Trump) administration.”
New housing generally costs more than existing homes, even though a shortage of houses on the market also has been driving up the price of used homes in the metro area.
“There is a still a gap between existing homes and new,” Hillmer said. “If you can afford it, it really provides you with the ultimate opportunity to customize and really make it the way you want it to be.”
The possibilities for both building or remodeling will be on display this weekend at the Metropolitan Builders Association’s 27th annual Home Building & Remodeling Show in the Exposition Center at State Fair Park in West Allis.
“It really is a great opportunity, whether you want to build, remodel or you just want to pick out paint colors or new carpeting,” Hillmer said. “Whatever you want to do to your home, we have a solution.”
The show is Friday from noon to 8 p.m.; Saturday, 10 a.m. to 8 p.m.; and Sunday, 10 a.m. to 5 p.m. Admission is $10. Attendees who bring two nonperishable items for the Hunger Task Force receive $2 off gate admission, MBA said.