The Greater Houston Partnership has reported that building permits are up $1.2 billion in a 12-month period.
Data from July 2022 shows that permits during the 12-month period from July ‘21 to July ‘22 were up 21.4% in comparison to permits from July ‘20 to July ‘21. Specifically, data from the Houston Public Works Department shows that commercial permits jumped 20.2% to $4 billion, while residential permits saw a slightly larger increase up 22.9% to $3.3 billion. The permits issued in the city of Houston include those for renovation work, single-family construction, multifamily construction and new professional buildings such as banks and office spaces. Spending in each of these areas has increased from 2021 to 2022.
A surge in building permits of course means a surge in construction activity. In the first seven months of 2022, construction contracts in Houston amounted to nearly $15.4 billion (an approximately $2 billion leap compared to July of 2021). Dodge Data & Analytics reports that of the $15.4 billion spent on construction contracts, non-residential contracts account for $6.3 billion; residential contracts account for over $9 billion.
While 2022 has been a huge year for residential construction, activity has decreased in May, June and July. This is likely due to rising prices and mortgage rates, as well as lack of supply. However, nonresidential construction continues to grow.