Construction permits issued to homebuilders are up 16% YoY in metro Phoenix, a sign that builders are racing to meet housing supply shortages, and showing strong growth this year and next in the housing market.
For the prior 12 months ending in November 2020, 26,374 permits were issued to homebuilders across the Phoenix Metropolitan Valley, up 16% from the 22,650 permits issued during the previous 12 months. This is the most recent data from the Home Builders Association of Central Arizona.
“Despite the effects of Covid-19 that have hampered some industries, the 2020 housing industry has been nothing short of booming” said Jim Belfiore, founder and namesake of Belfiore Real Estate Consulting based in Phoenix.
The city of Avondale had the biggest growth so far this year, with a 336% increase in single-family home permits issued for construction. Much of that is thanks to activity ramping up at Alamar, new a 1,130-acre master-planned community by Brookfield Residential Properties Inc. That site will include roughly 3,700 new homes.
This year, more new homes have sold than in any year since Belfiore began tracking the housing industry in 2005.
“Twenty-two percent more new home contracts were signed this year than last year through mid-November, while sales have tapered off 7% over the last three months from the highest single 30-day period of sales since at least early 2006,” he said. “Buyers purchased 46% more homes from mid-October to mid-November than during the same period a year ago.”
