NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665
June 22, 2000
New housing units authorized for construction in North Dakota in 1999 totaled 2,577, 56 percent of which were for single family homes averaging $116,399. Nationally, the value of a new single family home averaged $126,035 last year.
That 1999 housing figure for North Dakota represents a 13.3 percent decline from the 2,974 units authorized in 1998, according to a recent Economic Brief released from the North Dakota State Data Center at North Dakota State University.
"North Dakota's new growth in housing is largely restricted to its major metropolitan centers. More than 96 percent of the single family homes authorized for construction in 1999 were in the Fargo, Bismarck and Grand Forks metropolitan areas," says Richard Rathge, data center director. "This relatively restricted growth in housing also accounts for the surge in valuations. We are seeing more and more higher-priced homes spring up in the state's three largest cities, and this factor is driving up the state's average valuation."
New housing units authorized for construction in North Dakota peaked at 4,364 in 1983 and then slowed down in the late 1980s before reaching a low of 1,512 in 1990, Rathge says. Housing starts during the remainder of the 1990s, although continuing to fluctuate, did increase compared to the late 1980s.
Also during the 1990s, there was a significant increase in the value per housing unit authorized. The average value of a North Dakota housing unit authorized for construction (including units in multifamily structures) rose from about $58,000 per unit to nearly $87,000 per unit between 1990 and 1999.
In 1999, Florida, Texas and California each had more than 100,000 housing units authorized for construction, Rathge says. Last year about a quarter of the nation's new housing permits were authorized in Florida (164,722), Texas (146,564) and California (138,039). These three states, once again, far outdistanced the rest of the nation, including other high-growth states such as Georgia (89,581 permits), North Carolina (84,754) and Arizona (65,109).
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Source: Richard Rathge (701) 231-8621
Editor: Dean Hulse (701) 231-6136