Spotlight on Apartments: Takeaways from the 2016 Residential Construction report

The SEMCOG region has not seen a great deal of new apartments being built over the past decade. In fact, only 332 new apartment units were constructed in 2009. That was the fewest recorded in a single year since SEMCOG started keeping track of this data in 1969. That was also the same year that the fewest new homes were constructed based on the same data source.

However, the numbers are showing very positive signs for new apartment construction in our region over the past few years. In 2016, local governments issued building permits for 3,287 new apartments to be constructed. That number has not been surpassed since 1998. However, this is not a one-time spike in construction; 2014 and 2015 also set high-water marks. The percentage of new residential units that are apartments is also increasing. During the early part of the century, apartments only represented about 10 percent of the new housing units being constructed in Southeast Michigan. In 2016, a full third of all new residential units being constructed were apartments. Our region has not seen that high a percentage in 25 years.

Apartment Building Permits Issued within the SEMCOG Region

In a recent interview, Kathleen Lomako, the Executive Director of SEMCOG talked about our region as having someplace for everyone. Having a mixture of housing options is an important component in a well-balanced region. The construction of new homes generally catches the eye of most people when SEMCOG releases its residential building permits report. New homes equate to a lot of money being spent. New apartments may not be as flashy, but they have a lot to say as well.

Detroit led the way in the region for the construction of new apartments. Permits were issued in 2016 for over 1,000 new apartments, mainly in the downtown Detroit area. Ann Arbor was second in the region; they will see nearly 500 new apartments added to their community. These permits are evidence of what has been talked about for several years. A lot of younger adults are seeking out places to live in the vicinity of where they work. They also want to be close to diverse entertainment venues. Where were the new residential building permits issued last year? View the report to find out.

Apartment construction is not only for the young. Many people are giving up the “homestead” and looking for a life without grass to mow and fewer chores to do around the house, especially once the children have all grown up and moved out.

Changing demographics: This is one of the reasons why SEMCOG does a regional forecast each five years and it is a reason why local governments are required to update their master plans. Times change, people change, and our communities need to at least keep up, if not stay one step ahead of that change.

Do you want to take a good hard look at the projected future demographics of our region in 2045? View the forecast here.