Johnston County Single-Family Home Permits Rise Despite Challenging Housing Market

Single-Family Permits Increase 11 Percent While Townhome Activity Drops Sharply

JOHNSTON COUNTY — Johnston County builders pulled more permits for traditional single-family homes in September than they did a year earlier, even as mortgage rates and tighter lending conditions continue to pressure the housing market nationally.

The Johnston County Inspections Department issued 152 permits for single-family homes during September, up from 137 in September 2025, an increase of nearly 11 percent.

But the overall number of new residential permits remained unchanged at 158.
The difference was a sharp decline in townhome permits.

Single-Family Homes Rise, Townhomes Fall
Only four townhome permits were issued in September, compared with 20 during the same month last year.

The declared value of townhome construction dropped from approximately $4.3 million to $1.2 million.

Two modular home permits were issued during September, compared with one a year earlier.

Altogether, new single-family, modular and townhome construction was valued at approximately $40.4 million, up slightly from $39.2 million in September 2025.

The one-month comparison suggests Johnston County builders continued moving forward with detached single-family construction even as townhome activity slowed considerably.

Manufactured Home Permits Remain Steady
Manufactured-home permitting changed little from a year earlier.

Johnston County issued 16 manufactured-home permits in September, compared with 15 in September 2025.

Nine permits were for doublewide homes, up from seven a year earlier. Singlewide permits declined from eight to six.

One triplewide manufactured home was permitted this September.

Commercial Projects Fewer, But More Expensive
Only three new commercial permits were issued in September 2026, compared with 15 a year earlier. However, the three projects carried a combined value of approximately $20.1 million, slightly higher than the $18.2 million value of the 15 projects permitted in September 2025.

The numbers point to fewer commercial projects, but substantially larger projects on average.

Mortgage Rates Add Pressure
Johnston County’s September numbers come as borrowing costs have again become a major issue for homebuyers and builders.

Freddie Mac reported Thursday the average 30-year fixed mortgage rate had climbed to 7.28 percent, up from 7.03 percent the previous week.

Higher mortgage rates increase monthly payments for buyers and can reduce the price of a home they qualify to purchase.

Lending conditions have also tightened.

The Mortgage Bankers Association reported mortgage credit availability declined in August, meaning lenders reduced some loan offerings. The association also reported purchase mortgage applications in late September were 14 percent below the same period a year earlier.

Builders across the country are feeling the effects.

The National Association of Home Builders reported in September that builder confidence had fallen to its lowest level in a year. Thirty-eight percent of builders surveyed said they had cut prices, while 66 percent were offering some form of sales incentive to attract buyers.

National Housing Market
National housing numbers have also been mixed.

U.S. Census Bureau figures showed residential building permits in August were 3.5 percent higher than a year earlier, although permits declined from July.

Sales of newly constructed single-family homes increased 6.4 percent from July to August but remained 2 percent below the pace recorded a year earlier.