Building Permit Issuance in the Capital Region Grows 24% Between 2023 and 2024

In the 2024 US Census Building Permit Survey, the Capital Region saw a 24.24% increase in the number of building permits issued, rising from 1,873 in 2023 to 2,327 in 2024. This increase brings the region closer in line with the 17-year average of 2,170 permits issued annually.

However, it’s important to note that building permit data relies on accurate reporting from municipalities to the Census Bureau. If certain municipalities fail to report their permit issuances, it could result in an undercount, making it appear as though fewer permits were issued than in reality. Additionally, not all developments that receive building permits are actually constructed. Various factors, such as funding delays, changes in project plans, or regulatory hurdles, can cause projects to be delayed or even cancelled, further complicating the picture.

About the data: The U.S. Census Building Permit Data categorizes permits based on the number of units and buildings for which they are issued. For example, a permit for a single-family home is recorded as one building and one unit. The data also distinguishes between 2-unit buildings, 3-4 unit buildings, and buildings with 5 or more units (multi-family homes), providing separate values for the number of buildings and total units. In this DataNews article, the number of permits refers to the number of units that were issued a permit.

Single-Family Vs. Multi-Family Development

Single-family building permit issuances in the Capital Region increased from 942 in 2023 to 1,162 in 2024, reflecting a rise of 220 permits, or 23.35%. This marks a return to normal building trends, with the 2024 figure closely aligning with the 17-year average of 1,150 permits issued for single-family homes in the region.

Similarly, multi-family building permit issuances also saw a significant increase. In 2023, 931 multi-family units were issued permits, while in 2024, that number rose to 1,165, an increase of 234 permits, or 25.13%. After a relatively low year in 2023, the region has rebounded to its typical development levels for multi-family housing, with the 17-year average standing at 1,019 permits.

Share of Building Permit Type

In both 2023 and 2024, the Capital Region experienced a roughly equal split between single-family and multi-family building permits issued. This balance marks a continuation of recent trends, where the issuance of permits for both types of housing has remained relatively stable.

However, the distribution between single-family and multi-family housing permits hasn’t always been so evenly split. Between 2008 and 2010, single-family homes dominated the construction landscape, with a higher number of permits issued for these types of developments compared to multi-family units. This was reflective of the housing market during that period, where demand for single-family homes was strong.

As time progressed, demand for multi-family housing began to rise. With a peak number of building permits issued for multi-family development in 2015, where multi-family housing permits accounted for 68% of all building permits issued in the region. Despite the surge in multi-family construction in 2015, the trend in the Capital Region has remained relatively balanced in recent years, with both single-family and multi-family housing being built in similar numbers.

Breakdown by County

In 2024, the Capital Region saw a total of 2,327 building permits issued across multiple counties. The distribution of these permits varied across the region, with Saratoga County taking up the largest share, accounting for 48% of the total permits. Notably, 66% of Saratoga’s permits were for single-family homes, while 34% were for multi-family units. The share of permits issued by Saratoga County has remained relatively consistent when compared to 2023, reflecting its dominant role in the regional housing market.

Albany County followed with the second-largest share, issuing 32% of the region’s total permits. Albany had a stronger shift toward multi-family housing, with 74% of Albany’s permits being issued for multi-family units and just 26% for single-family homes. This marks an increase in Albany County’s multi-family permit share from 2023.

Rensselaer County accounted for 14% of all building permits issued in 2024, with a 50/50 split between single-family and multi-family units. This is a significant shift from the previous year when multi-family units dominated the building permit landscape in the county. The more balanced distribution in 2024 indicates a diversification in housing types in Rensselaer County.

Schenectady County rounded out the regional distribution with 7% of the total permits issued. This represents a 2% increase in Schenectady’s share compared to 2023. The county also saw a more even split between single-family and multi-family units, in contrast to the predominantly single-family issuance in the previous year.

Building Permit Issuance Municipal Map

In 2024, the top five municipalities in the Capital Region for building permit issuances were led by Ballston Town, which issued an impressive 1,044 permits. Albany City followed with 968 permits, while Stillwater Town ranked third with 708 permits issued. Guilderland and Bethlehem rounded out the list, with 540 and 536 permits, respectively. These municipalities highlight the significant construction activity occurring across the region, contributing to its ongoing growth and development.

Additional Resources:

https://www.census.gov/construction/bps/methodology.html

https://www.census.gov/construction/bps/visualizations/statemap/index.html