Starting with its 2024 population estimates, the U.S. Census Bureau is introducing a significant change in how it tracks housing units across the country. For the first time, the Bureau will begin incorporating data on the rehabilitation of uninhabitable structures-buildings previously deemed condemned or unlivable-into inhabitable housing units. This move represents an important shift in the Bureau’s methods for estimating housing units, which in turn, are used in developing population estimates used by local governments, businesses, and policymakers.
Until now, the Census Bureau’s definition of new housing units focused exclusively on new construction. The Bureau relied on building permits, estimates of non-permitted construction, mobile home shipments, and demolition permits to track changes in the housing stock. However, for communities that have programs to restore dilapidated structures into inhabitable units without the issuance of a permit, there is presently no option until the next decennial census for the units to be included in the housing unit universe and inform the annual estimates.
Background
Each year, the U.S. Census Bureau produces annual estimates of the number of housing units by community. For each annual release of the housing unit estimates, the entire series of estimates beginning with the most recent decennial Census – in this case, April 1, 2020 – is revised and updated. The estimates use building permits, estimates of non-permitted construction, mobile home shipments, and demolition permits to estimate change in the housing stock. These component data are obtained from various Census Bureau surveys, one of which is the monthly Form C-404.
Census Bureau’s Form C-404, or the Building Permits Survey, is used to collect data for new residential construction and includes housing units authorized by building permits, housing starts, and housing completions. The Building Permits Survey is the only source of statistics on residential construction for states, counties, and communities. The Census Bureau uses the new residential construction data in the development of annual population estimates. Before developing the annual population estimates, the Census Bureau, through the State Demographer, provides the new residential construction file to SEMCOG for review.
Similar to the Census Bureau, SEMCOG acquires permit data for new residential construction from communities in the region through a monthly Building Permit Collection program. Data is requested from community building departments, county planning departments and other permitting agencies. Permit data are for issued, legal construction of new single-family homes, site condominiums, attached condominiums and apartment buildings/units. Demolition permits are also requested. SEMCOG uses this data to review the Census Bureau’s new residential construction file and also to develop SEMCOG’s annual population and household estimates, which the communities in the region use for various planning activities.
What’s Changing and Why It Matters
Prior to the current proposed change of considering rehabilitation of uninhabitable structures to inhabitable residential units, Census Bureau’s definition of new housing units depended solely on new construction permits. The 2020 Census definition of “living quarters” excludes structures “in which no one is living or staying that are open to the elements.” Also excluded are “vacant structures with a posted sign indicating that they are condemned, or they are to be demolished.” As a result, the Census does not consider structures falling under these exclusions to be housing units, nor demolition of such structures to constitute housing unit loss. This left many rehabilitated properties out of the housing unit stock, especially in communities with separate processes for restoration projects that don’t fall under traditional building permits.
As part of the annual housing unit review process, starting in 2024, the Census Bureau will begin accepting data on the rehabilitation of uninhabitable structures, allowing these restored units to be counted along with newly constructed housing. New Residential Construction data, including the now proposed collection of the rehabilitation of uninhabitable structures to inhabitable units, is a key component in estimating a community’s population and understanding how it is growing or changing over time. These population estimates are also essential for guiding decisions on the distribution of federal and state funding, planning local infrastructure projects, and shaping policies related to community development and economic growth.
What Does This Mean for SEMCOG?
In order to provide communities a simple way to report this data, SEMCOG will update its own Building Permit Collection monthly form which is sent to building department contacts to report these rehabilitated residential buildings. These are not typical home renovations-like kitchen remodels or exterior updates-but major projects that convert buildings once considered unlivable into new housing units.
The upcoming change to include information about rehabilitated units alongside new housing will provide a more accurate picture of a community’s housing stock and offer better insight into how the community is growing or stabilizing its available housing. For communities in the SEMCOG region, SEMCOG’s annual review of the Census Bureau’s new residential construction file is the only opportunity to update Census housing unit counts since the last decennial census.
What’s Next?
Starting in November 2024, communities will see an additional option at the bottom of SEMCOG’s monthly housing unit data input form to report rehabbed residential units. As always, SEMCOG will continue to collect new construction permits.
Communities submitting rehabilitation data should be able to provide documentation that any new housing units represented by those data were not already included in the 2020 housing unit base as they were deemed condemned at that time or were since removed from estimates as housing loss due to being recorded as demolished.
For any questions related to the housing unit review, you can contact Sirisha Uppalapati, Demographic Coordinator, Data Analysis. For inquiries on SEMCOG’s building permit collection process, reach out to Janet Mocadlo, Planner III, Data Analysis.
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