Building permit values set new Fort Smith metro record in 2023

The Fort Smith metro in 2023 set another record for building permit values. Fort Smith, Greenwood, and Van Buren building permits totaled $492.294 million in 2023, 2.5% more than the $480.376 million in 2022 – a year that saw all three cities posting significant gains.

Building activity has continued to show gains in the past few years, with 2023’s total up 39.9% from 2021’s $343.289 million and 80.6% up from 2020’s $265.975 million.

Though Greenwood and Fort Smith saw gains in building in 2023, Van Buren’s building activity declined significantly from a year that saw record-breaking building activity, due in part to a $100 million Simmons Foods addition to its plant at 2101 Twin Circle in Van Buren in 2022.

The region recorded $24.314 million in permitted activity in December, down 30% from the $34.754 million in December 2022.

FORT SMITH GROWTH
There were eight permits issued for new residential construction in December with a value of $2.964 million, up 75% from the $1.686 million value of eight new residential construction projects in November and up 4.8% from the $2.828 million value of 13 new home permits issued in December 2022.

Fort Smith issued 182 permits in December with a value of $23.398 million, up 80.6% from the $12.964 million value of 197 permits issued in November but down 12.5% from the $26.742 million value of 274 permits issued in December of last year. For the year, Fort Smith had $442.856 million in permitted activity, up 22.8% compared with the $360.381 million in 2022.

Jimmie Deer, director of building services for the City of Fort Smith, said Fort Smith’s increased building activity value was helped by the increase in the number of duplexes and single family homes built in 2023. There were 266 in 2023, a 26.7% increase from the 210 new single family homes and duplexes built in 2022.

For the year, the city issued 190 permits for new single-family homes with a combined value of $49.006 million, a 26.8% increase from the $36.382 million value of 177 new single-family construction projects in 2022. The average cost of a newly built single-family house in Fort Smith in 2022, was $257,927, compared to $226,035 in 2022.

There were 76 permits issued for new construction of duplexes in 2023 with a value of $23.21 million, up 77% from the $13.094 million total value of 39 permits issued in 2022.

“Total commercial permits were also up from 479 in 2022 to 573 in 2023 with an increase of $30.106 million in 2023 cost,” Deer said. “Hopefully construction increases for 2024 will be great as well.”

There were no new commercial construction permits issued in December compared to one permit for new construction with a value of $600,000 in November and six permits for new commercial construction valued at $14.267 million in December 2022.

There was a permit issued for a $5 million addition to Harbor House, an alcohol and drug rehab facility at 615 N. 19th St., and a permit issued for a $3.2 million remodel of the OK Foods facility at 4201 Reed Lane in Fort Smith.

Carl Norris, CEO of Harbor House, said they are completely renovating the 114-year-old building that has been the men’s residential treatment facility for over 50 years, which is known as the “Big Red House.”

“Along with the renovations, we will be expanding capacity from 32 residents to 44 residents and adding a state of the art kitchen/dining hall/ meeting room,” Norris said.

Harbor House will be using the third floor for the first time since it was an orphanage in the 1950s, he said.

“Upon completion in summer of 2025, the third floor will be a library/meditation area, so men can have a quiet place for free time during their 28-day treatment stay,” Norris said.

Fort Smith issued 25 permits for new commercial construction projects in 2023 with a value of $48.219 million, down 55% from the $107.435 million for 40 new commercial construction projects permitted in 2022.

VAN BUREN, GREENWOOD GAINS

Though 2023 wasn’t as strong on the building front as 2022 for Van Buren, the region’s second largest city, the city still issued $33.332 million in building permits in the past 12 months.

Though that total is comparable to past years, it is a 68.3% decrease from the $105.136 million building permits issued by the city in 2022, a year in which Van Buren experienced significant building growth thanks in large part to a large expansion at Simmons Foods.

The city issued 64 permits in December with a value of $599,500, a 43% decrease from the $1.054 million value of 89 permits issued in November and a 92% decrease from the $7.729 million value of 80 permits issued in December 2021.

The city issued seven permits for residential construction with a combined value of $596,500 in December, down 1.16% from the $603,500 combined value of six permits issued in November and down 28.7% from the $837,000 value of eight residential building permits issued in December 2022.

The city issued permits for 51 new single-family dwellings in 2023 with a combined value of $10.275 million, a 17% decrease from the $13.404 million value of 61 new residential construction projects permitted in 2022. The average cost of new home construction in Van Buren in 2023 was $201,470, compared to $219,738 in 2022.

There were no commercial construction projects issued in December, compared to one project valued at $135,000 permitted in November and two projects valued at $6.845 million permitted in December 2022.

The city issued seven permits for new commercial construction projects in 2023 with a combined value of $4.003 million, a 98% decrease from the $51.932 million value of nine new commercial construction projects permitted in 2022.

Greenwood issued three permits in December with a combined value of $316,423, down 52.1% from the $660,873 value of 14 permits the previous month and up 11.7% from the $283,364 value of nine permits issued in December 2022. The city’s 2023 permitted building total of $16.116 million is 9.6% higher than the $14.7 million in permitted activity in 2022.

REGIONAL BUILDING ACTIVITY RECAP
Combined total for the three cities
2023: $492.294 million
2022: $480.376 million
2021: $343.289 million
2020: $265.975 million
2019: $241.741 million
2018: $231.78 million
2017: $210.844 million
2016: $211.345 million
2015: $218.899 million
2014: $198.983 million
2013: $202.389 million