2024 building permit values down 45% in the Fort Smith metro

The Fort Smith metro in 2024 posted a steep drop in building permit values compared with 2023. Fort Smith Greenwood and Van Buren building permit values totaled $271.097 million, a 45% decline from the $492.294 million in 2023.

This is the first year since 2017 that regional building activity has declined in the region. The totals from 2024 are 43.6% lower than the $480.376 million reported in 2022 and 21% lower than the $343.289 million reported in 2021.

The region recorded $9.495 million in permitted activity in December, down 70.6% from the $32.261 million reported in November and 60.9% from the 24.314 million in December 2023.

FORT SMITH NUMBERS DECLINE
There were 14 permits issued for new residential construction in December with a value of $2.91 million, down 1.8% from the $2.964 million value of eight new new residential permits in December 2023.

Fort Smith issued 159 permits in total in December with a value of $8.771 million, down 62.5% from the $23.398 million value of 182 permits issued in December of 2023.

For the year, Fort Smith had $235.776 million in permitted activity, down 46.8% compared with the $442.856 million in 2023. For the year, the city issued 166 permits for new single-family homes with a combined value of $45.454 million, a 7.2% decrease from the 49.006 value of 190 new single-family construction projects in 2023. The average cost of a newly built single-family house in Fort Smith in 2024 was $273,819, compared to $257,927 in 2023.

There were 48 permits issued for new duplex construction in 2024 with a value of $17.075 million, a decline of 26.4% from the $23.21 million value of 76 permits for new construction of duplex issued in 2023.

There were no new commercial construction permits issued in December. There also were no new commercial construction permits issued in December 2023.

The largest commercial construction project permitted in December was a $430,000 repair of the former Trane manufacturing plant at 4811 S. Zero St. that was sold at auction for $5 million in the summer to Ecotech, a subsidiary of Mira Loma, Calif.-based Olivet International. The December building permit for the building listed the repair as a boiler replacement. The Trane plant was closed in 2017.

“One reason was 2023 (was record-breaking in terms of construction) included the Mercy large project as well as some large permits in the Chaffee area,” said Jimmie Deer, director of building services for Fort Smith. “Hopefully 2025 will see a great year with the upcoming (foreign pilot) training center and hopefully construction going along with it for housing and other developments.”

VAN BUREN, GREENWOOD
The region’s second largest city issued $22.808 million in building permits in the past 12 months, a 31.6% decrease from the $33.332 million permitted in 2023. Van Buren issued 73 permits in December with a value of 483,900, a 19.5% decrease from the $599,500 value of 64 permits issued in December 2023.

The city issued eight permits for residential construction in the month with a combined value of $194,900, a 67% decrease from the $596,500 value of seven residential projects permitted in December of 2023.

The city issued permits for 24 new single-family dwellings in 2024 with a combined value of $6.248 million, a 39.2% decrease from the $10.275 million value of 51 new single-family construction projects permitted in 2023. The average cost of new home construction in Van Buren in 2024 was $$260,333, compared to $201,470 in 2023.

The city issued six permits for new duplex and multi-family construction projects in the year with a combined value of $414,000 compared with 78 projects in 2023 that had a combined value of $6.38 million.

There were three commercial construction projects permitted in December with a combined value of $149,500. There were no commercial projects permitted in December 2023.
Van Buren did see an increase in commercial construction projects in 2024. The city issued 10 permits for new commercial construction in 2024 with a combined value of $8.99 million, a 124.6% increase from the $4.003 value of seven new commercial construction projects permitted in 2023.

Greenwood issued nine permits in December with a combined value of $240,289, a 24% decrease from the $316,423 value of three projects permitted in December 2023. The city’s 2024 permitted building total of $12.512 million is 22.4% lower than the $16.116 million in permitted activity in 2023.

REGIONAL BUILDING ACTIVITY RECAP

Combined total for the three cities
2024: $271.097 million
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