2011 Hampton Roads Real Estate Market Review - College of ...

HISTORICAL APARTMENT DEVELOPMENT
Historical Multi-Family Building Permits
Virginia Beach-Norfolk-Newport News
Overall housing development in the region was at its peak from 2002-2006 with more than 10,000 total housing
permits issued annually (single and multi-family combined). With the slowdown in the overall housing market, residential
permits issued fell to 5,223 in 2009 which is less than half of the activity at the peak of the market in 2005.
Based on single and multifamily permits issued year to date, the slowdown in new housing starts is expected to continue
with less than 4,000 units permitted in 2010.
Multi-family permit activity, which includes rental and for-sale units, was strongest in 2005. However, much of
the permit activity up until 2009 had not been rental apartments, but instead for-sale condominiums and townhouses,
especially in recent years when a decline in interest rates made it easier for many people to get into the for-sale arena.
It is expected that 2010 will record the lowest permit activity since 2000, although most of the permits in the last year
are for rentals versus the for-sale market.
TABLE II
Annual Multi-Family Permit Activity
Permits Issued
3,200
3,000
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1,102
1,216
1,384
684
1,519
2,355
2,292
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
(thru Nov.)
2,339
3,085
1,159
1,315
1,811
2,336
848
2011 Hampton Roads Real Estate Market Review
70