May 17, 2001

New Housing Units Down in 2000 in North Dakota

New housing units authorized for construction in North Dakota totaled 2,128 in 2000, representing a 17.4 percent loss from the 2,577 units authorized in 1999. A recent Economic Brief released from the North Dakota State Data Center at North Dakota State University also shows that roughly 59 percent of all housing units authorized in 2000 were for single family homes, averaging $116,572. Nationally, the value of a new single family home authorized for construction averaged $134,069.

"New housing construction in the state reflects the continued consolidation of people in the major metropolitan centers. Approximately 94 percent of the single family homes authorized for construction in 2000 were in Fargo, Bismarck, and Grand Forks metropolitan areas," said Richard Rathge, director of the State Data Center. "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, which drives up the state’s overall average valuation," said Rathge.

New housing units authorized for construction in North Dakota reached a peak in 1983 at 4,364, followed by a slow-down in the late 1980s and a low of 1,512 in 1990. During the early 1990s, authorized units rebounded and peaked at 3,379 mid-decade, then began a gradual slide back down to 2,128 by 2000. The notable exception was the flood period of 1997-98 when housing construction surged slightly. There has been a significant increase in the value per housing unit authorized during the past decade. The average value of a housing unit authorized for construction (including units in multi-family structures) in North Dakota has risen from approximately $58,000 per unit to nearly $90,000 per unit between 1990 and 2000. Single family units jumped in average value from $83,925 in 1990 to $116,572 in 2000. More than half that increase occurred in the past three years.

In 2000, three states (Florida, California and Texas) each had more than 140,000 housing units authorized for construction. Approximately one in every four of the nation’s new housing permits were authorized in Florida (155,269), California (145,575) or Texas (141,231). These three states, once again, far outdistanced the rest of the nation, including high growth states like Georgia (91,820 permits), North Carolina (78,376) and Arizona (61,485). North Dakota ranked 49th in the nation in the number of permits issued with 2,128. Wyoming was 50th with 1,582.

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Source: Richard Rathge, (701) 231-8621, richard_rathge@ndsu.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu

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