While building permits unexpectedly increased for the second consecutive month nationwide — showing a 6% jump in August — they were down 9.4% from July to August and down 4.6% year-over-year in August in metro Phoenix.
Despite the downward trend over the past few months, Steven Hensley, advisory manager for Zonda, pointed out the huge year-over-year increase in permit activity.
“Given underlying issues in the industry — including labor and material constraints, low developed lot supply, and rising prices — we expect permits and demand will stabilize around a similar level exhibited in recent months,” he said.
“Based on today’s environment, I would not be surprised if 2022 permit issuances are lower than 2021 levels.” – Steven Hensley, Zonda
As it relates to homebuyers, there is no reason for them to worry about recent monthly slowdowns, said RL Brown, publisher of RL Brown Housing Reports.
He said the permit pipeline is stuffed.
“Homebuilders and homebuyers should be concerned with ‘unstuffing’ the pipeline and finishing the homes already permitted,” Brown said.