Strong Nashville Housing Market Sets Record for Permits Issued

Over in Memphis, Tennessee mortgage applications rose to a record number in 2006.

Meanwhile, there was more good news in the Nashville housing market: it set a new record in building permits last year with nearly $2 billion worth of construction approved by the codes department.

Permits issued in 2006 totaled 10,937, a 4 percent increase over 2005, according to a released statement from the mayor’s office. The year-over-year increase in permit value was 11 percent, with $1.85 billion in permits pulled in 2006 compared to $1.66 billion in 2005.

Steady mortgage rates contributed to the confidence of builders and buyers in the region.

“These numbers show the vitality and strength of Nashville’s economy,” Nashville Mayor Bill Purcell said. “We continue to grow in a healthy way, from the new skyscrapers coming downtown to the residential communities being built across the county, to the home renovations in the city’s older neighborhoods.”

While permits overall fared well, there was a 3 percent decline in residential single-family permits issued. Nevertheless, last year still comes in as the second highest in residential permits on record with 3,498 issued, down from 3,642 in 2005.

With home loan rates expected to remain reasonable, 2007 could result in even better numbers.