November 18, 2004
2003 Brings More, Concentrated Housing Construction to North Dakota
New housing units authorized for construction in North Dakota increased 14 percent during the past year, from 3,265 units in 2002 to 3,721 in 2003. While the numbers continue to rise in North Dakota, due largely to historically low interest rates, the growth is mostly concentrated in larger urban centers throughout the state. In 2003, nearly 78 percent of new housing authorized for construction in 2003 was located in six of the most populated cities throughout the state; Fargo, West Fargo, Grand Forks, Bismarck, Mandan and Minot.
This month’s “Economic Briefs,” a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on the number and value of new privately-owned housing units authorized for construction in North Dakota. The upward trend in housing construction was largely a result of an increase in single-family home permits.
Single family homes authorized for construction grew 30.7 percent between 2002 and 2003 in North Dakota. At the same time, authorized housing units in multiple-unit structures decreased 6.5 percent. In 2003, single-family homes comprised nearly two- thirds of new authorized housing in North Dakota (63 percent). For the majority of states nationwide, single-family homes captured more than 80 percent of new authorized housing construction. Nationally, 77 percent of all new housing construction was comprised of single-family homes.
While single-family homes comprised a majority of new authorized housing construction statewide in 2003, just the opposite was true in Fargo and Grand Forks. Here, new construction of homes in multiple-unit structures comprised the majority: 54 percent in Fargo and 62 percent in Grand Forks. “Surprisingly, the largest number of single family units authorized for construction was in West Fargo with 506 (22 percent) followed by Fargo with 455 (19 percent),” says Richard Rathge, director of the Data Center. “Also surprising is the suburbanization occurring around Bismarck. Nearly the same number of single family units were authorized outside Bismarck city limits (225) as were authorized within the city (263),” Rathge says.
The value per single-family home authorized for construction in North Dakota averaged $136,102 in 2003. Nationally, the value of a new single-family home authorized for construction averaged $149,381. California reported the highest average value per single-family home at $194,420 and Delaware the lowest at $111,960.
Florida, California, and Texas continue to capture approximately one-third of all new housing units authorized for construction in the United States (31 percent in 2003).
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