Building permit values down more than 60% in Fort Smith metro through July

Building activity in the Fort Smith metro continues to come in well under that of the record-breaking 2023. Fort Smith, Greenwood and Van Buren reported combined July building permit values of $19.665 million, down 12.2% from the $26.654 million reported in July 2023.

The July numbers were up 33.9% from the $17.415 million reported in June. Year-to-date the region has issued $144.173 million in building permits, down 61.4% from the $373.475 million reported in the first seven months of 2023.

Fort Smith issued 191 permits in July with a value of $19.665 million, up 20.9% from the $16.266 million value of 220 permits issued in June, but down 8.6% from the $21.505 million value of 436 permits issued in July of last year. Year-to-date, Fort Smith has reported $139.369 million in building projects, down 60% from the $249.301 million reported in the first seven months of 2023.

There were six permits issued for new residential construction in July with a combined value of $2.351 million, down 54.2% from the $5.131 million value of 15 permits issued for new residential construction in July but up 39.8% from the $1.682 million value of nine new residential construction permits issued in July 2023.

MARS EXPANSION
There were no new commercial construction projects permitted in July, as compared to the $2.75 permit for a new warehouse for the Fort Smith Port Authority issued in June and the $3.4 million value of three new commercial projects permitted in July 2023.

The biggest commercial projects permitted in July were those for Mars Petcare. The pet food manufacturing company had three commercial projects permitted in July for a total of $5.099 million – one for a remodel at $2.499 million and two “other” projects totaling $2.6 million. The Fort Smith Board of Directors on May 21 approved a bond program that allows Mars Petcare to expand its Fort Smith plant, which employs more than 600 people.

Mars Petcare’s overall expansion will add production lines and increase operational output by more than 40%. Mark Roberts, project manager of the latest expansion, said the ongoing expansion has added 132 jobs. Information from the city said the approximate average wage at the plant is $21.50 per hour. Roberts said the plant has between 630 and 660 employees.

VAN BUREN AND GREENWOOD
Van Buren, the region’s second largest city, had 72 projects permitted in July with a total value of $840,400, 12.9% less than the $964,400 value of 86 projects permitted in June and 65.6% less than the $2.444 million value of 120 projects permitted in July 2023.

The city issued six permits for residential construction in the month with a total value of $664,900, up 27.7% from the $520,700 value of seven residential permits issued last month but down 61.6% from the $1.73 million in residential projects permitted in July 2023.

There was one commercial construction project permitted in July for a total cost of $165,000. That is down 60% from the $414,000 value of two commercial construction projects permitted in June, and down 74.6% from the $648,500 value of permitted commercial construction projects in July 2023.

The city has had $8.013 million in permitted activity in the first seven months of the year, down 50.6% from the $16.221 million permitted through the same time period in 2023.

Greenwood issued 37 permits in July with a value of $2.815 million, more than 15 times than the $184,393 value of 17 permits issued in June and 7.6% more than the $2.615 million value of 17 permits issued in July 2023. The city has had $8.604 million in permitted activity so far in 2024, up 8.2% from the $7.953 million in permitted activity through July in 2023.

The Fort Smith metro ended 2023 with building permits totaling a record $520.644 million, 8.4% more than the $480.376 million in 2022. Building activity has continued to show gains in the past few years, with 2023’s total up 51.7% from 2021’s $343.289 million and 95.7% up from 2020’s $265.975 million.

REGIONAL BUILDING ACTIVITY RECAP
Combined total for the three cities
2023: $520.644 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