With unprecedented shortages of labor and construction supplies, one would think that construction of new homes is stalling. In fact, according to data collected by Omnis Panels over the past two years, it is on the rise from coast to coast. In the Phoenix metro area, single-family home construction jumped 42% between June 2020 and June 2021. Tucson saw an even larger increase, with single-family home construction jumping 46% between June 2020 and June 2021.
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Each month, the US Census Bureau and the US Department of Housing and Urban Development release data reflecting trends in new residential construction. One of the main indicators of construction trends is the number of building permits issued for new projects. Recently, we analyzed data from 368 permitting municipalities across the country, in order to understand new construction trends at national and local levels.
For each municipality, we focused our analysis on two periods: the number of permits issued in the first half of 2020 and the number of permits issued in the first half of 2021.
National figures show an undeniable boom in new residential construction. Over the past two years, permits issued have increased by 36% nationally, for all sizes of residential projects. For single-family homes, the increase was 30 percent. For large buildings with five or more units, the increase was 21%. Also during this period, the average value of a newly built single family home increased by seven percent.