Permits for Grand Forks apartment construction spiked in 2013

Grand Forks saw a spike in the value of building permits in 2013, driven largely by a jump in new apartment and commercial construction.

While the total number of building permits issued by the city grew by just 5 percent 1,506 in 2012 to 1,579 last year the value of those permits grew from $127.7 million to $212.1 million a 66 percent increase. There were eight multiple dwelling buildings that were permitted totaling $22.2 million in 2012. That grew to 31 buildings permitted valued at $76 million last year.

The average number of buildings for which permits were issued annually from 2003 to 2012 was 7.4, less than a quarter of those in 2013.

The citys growing and expanding and everything is doing quite well, said Bev Collings, the citys building and zoning administrator.

New construction saw an increase almost across the board. Single dwelling and townhome construction increased, as did garages and commercial projects.

Apartments

A jump in apartment construction is likely the result of low vacancy rates in Grand Forks, said John Colter, executive officer of the Greater Grand Forks Apartment Association. He said the overall vacancy rate shown by their July 2013 survey was 3.97 percent.

Investors are looking at the current vacancy rates and theyre seeing the need for housing in Grand Forks, he said.

Low vacancy rates were part of the focus of the citys Blue Ribbon Housing Commission, which issued its final report in early 2013.

Anecdotal reports suggest that new apartments are filling very quickly and vacancy remains low while rents continue to rise, the report stated. Housing professionals should actively monitor vacancy rates and prices over the short term to determine how the new units affect the market.

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Permits for Grand Forks apartment construction spiked in 2013