Swooping out of the deep dive it took in 2022, the market for new housing construction here is leveling off.
“Last year was a sudden drop off. This year the decline has slowed and is keeping level with last year’s numbers,” says Director of Community Development for St. Charles County, Michael Hurlbert.
For single-family homes the County issued 1,195 permits through October, compared to 1,177 by the same time last year.
For multi-family units the County issued 710 permits through October, compared to 815 by the same time last year.
“Because of supply chain issues, rising costs and inflation—the ability to build houses is tougher, but St. Charles County is still doing fairly well from a regional perspective,” Hurlbert says.
Leading the recovery here has been single-family homes and the permits show the hot pockets:
- O’Fallon—262 permits
- St. Charles City—225
- Unincorporated St. Charles County—195
- Dardenne Prairie—77
- Lake St. Louis—58
- St. Peters —34
- St. Paul—30
Hurlbert predicts O’Fallon, St. Charles City and Wentzville will continue to lead the pack for single-family home building permits.
“There’s still room for growth,” he says.
As for multi-family building permits, the areas with the most permits through October are:
- St. Peters—354
- Lake St. Louis—156
- Dardenne Prairie—30
“I don’t know if the multi-family market is saturated. There’s still a demand for apartments because of several factors, including difficulty buying starter homes because there are so few and they go fast. And while young buyers can’t afford move-up homes yet, Empty Nesters don’t want the maintenance, so they buy condos or rent an apartment.”
Looking into next year, Hurlbert predicts the new housing construction market here will trend with the economy.
“It all comes down to cost and pricing. Where is that going to go? Is inflation going to level off? That’s going to drive it. I would suggest that inflation will still be a factor and that’s going to hamstring our growth a bit. But St. Charles County will continue to be the growth leader for the region.”