Less available land results in fewer building permits in Ridgeland

The city of Ridgeland is experiencing a significant drop in new residential construction this year due to a low inventory of available lots. Meanwhile, commercial development in the city continues to climb.

According to Director of Community Development Alan Hart, the city issued 49 building permits for single-family homes in 2018, resulting in a construction value of $20,586,440. The year before, in 2017, the city issued 51 permits for single-family houses with a total construction value of $22,347,549.

However, so far this year only eight building permits have been issued for single-family homes, which have a combined construction value of $5,275,350.

“The drop in residential building permits is a direct correlation to a low inventory of available lots,” Hart said. “We’ve been in discussion with several developers over the last few months regarding starting new subdivisions. Builders tell me that there is a shortage in most areas of the Metro or at least a pending shortage.”

Hart said the number one complaint he is hearing from developers is about the availability of affordable real estate, or lack thereof.

“In addition, infrastructure costs are so high that it is hard to absorb high land costs to be able to afford to develop a neighborhood,” he said.

As a result, a majority of the building permits issued for residential properties over the past few years have been for additions to existing developments. For example, most of the residential permits that were issued this year were for additional homes in Bridgewater, which was also the case in 2017.

This year, building permits were issued for other residential projects, including additions and alterations to two Ridgeland apartment complexes, Sunchase Apartments and Ridgeland Place Apartments, with construction values of $1,312,790 and $770,301, respectively.

On the other hand, Ridgeland is continuing to see commercial growth, which is a trend Hart said he expects to continue into the new year.

Building permits were issued this year for several noteworthy commercial projects, including a Marriott Hotel, Costco, Costco Fuel Center and the new city hall complex.

These projects alone have a combined construction value of $37,182,000, which is on par with the city’s growth the previous two years.

“We continue to capitalize on attracting commercial development including new buildings, redevelopment of buildings and sites and renovations of commercial spaces,” Hart said. “We anticipate that this trend will continue into 2020 based on conversations with developers and the available inventory.”

Notable renovations of commercial spaces which were granted permits this year include additions to the McDonald’s on Highway 51 and the renovation of the theater on Ring Road near Northpark Mall which will become a B&B Theatre.

Unlike the city’s residential development, Hart said Ridgeland’s commercial growth cannot be pinpointed to one particular area.

“There is commercial development occurring in nearly every commercial area in the city,” Hart said.

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