This article is part of an ongoing, county by county overview of the Tri-County Area. This article covers the employment and housing permit trends in Ingham County. Information on employment and housing permits over time is beneficial because it shows whether a region’s economy and housing supply are moving in sync or drifting apart.

Figure 1 illustrates trends in single-family and multi-family building permits in Ingham County between 2014 and 2024. During this period, approximately 3,800 multi-family permits were authorized. Because a multi-family permit typically authorizes a structure containing multiple housing units, these projects can add a meaningful number of units to the local housing supply and help address the ongoing shortage of multi-family housing.^[1]

Single-family permitting activity remained strong between 2014 and 2024, with year-to-year fluctuations but consistently solid levels of development. During the peak years of the COVID-19 pandemic (2020 and 2021), single-family permits declined from 2019 levels (277 permits) but rebounded to near pre-pandemic levels in 2021 (254 permits), indicating that residential construction activity remained resilient despite broader economic disruptions.

Figure 1: Comparison of Single and Multifamily Permits in Ingham County, 2014-2024

 

Source: Points Consulting using Michigan Capital Region Data Hub

Figure 2 displays employment trends in Ingham County between 2014 and 2024. Like much of the United States, employment declined in 2020 due to the pandemic. However, employment has increased each year since 2021, and by 2023 total employment exceeded pre-pandemic levels, indicating that Ingham County’s labor market has not only recovered but has expanded since the pandemic.

Figure 2: Total Annual Employment in Ingham County

Source: Points Consulting using Michigan Capital Region Data Hub

Employment growth and stability can shape how many housing permits are issued and how quickly development occurs. When a community adds jobs, housing demand increases as more households form or move into the area. Strong employment stability reduces risk for developers and lenders, increasing their willingness to finance housing projects when job losses are unlikely and default risk is low.

Figure 3 illustrates the ratio of units permitted per job gained in Ingham County between 2014 and 2024. Overall, employment growth has generally outpaced housing production, indicating that more jobs have been added than housing units permitted during much of the period. However, adding an additional job to an existing business typically takes less time than obtaining permits and completing the construction of a new home. The ratio has consistently shown employment growth outpacing housing permitting excluding the pandemic years.

Figure 3: Units Permitted per Job Gained, Ingham County, 2014-2024

 

Source: Points Consulting using Michigan Capital Region Data Hub

In 2017, the ratio was 0.2, meaning that for every 5 jobs added only one unit was permitted. A notable downward trend occurred between 2017 and 2018 where the ratio fell to a value of negative 0.7. Although 431 housing units were permitted in 2018, the decline in employment caused the ratio to turn negative. Job losses in the Trade, Transportation, & Utilities, Information, and Leisure & Hospitality sectors during 2018 likely contributed to this decline.^[2] This metric is important to monitor because employment growth that outpaces housing permitting can place upward pressure on housing prices.