Northwest Arkansas' new-home permits more than double national average
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Nearly 109 building permits for new homes per capita were issued in the Northwest Arkansas metro area in May 2023, up from 76.2 in May 2020 — the early months of the COVID-19 pandemic.
- Of the 586 total permits during May, 534 were issued for single-family homes, six for buildings with 2-4 units, and 46 for those with five or more units.
- That's per a new analysis of Census Bureau data.
The big picture: Nationwide, 42.3 new homebuilding permits per capita were issued in May 2023, up from 32.9 in May 2020.
Why it matters: A post-pandemic nationwide housing shortage is keeping prices high.
- Recent estimates from Freddie Mac indicate the U.S. is short about 3.8 million units of housing, either for rent or purchase, Axios' Emily Peck reports.
- A bump in new-home construction, however, could bring prices down — it's basic supply and demand.
By the numbers: In May 2023, 139,600 total permits were issued across the U.S.; many of those — 88,900 — were for single-family homes.
- Nearly 46,000 were issued for buildings with five or more units, and nearly 5,000 for those with two to four units.
State of play: While many newly built homes have been targeted at (and priced for) relatively wealthy buyers, homebuilders are starting to focus on more affordable projects for first-time homebuyers, per Axios' Matt Phillips.
What they're saying: "It's a renewed focus, given the lack of inventory," Robert Dietz, chief economist at the National Association of Home Builders, told Matt.
- "First-time buyers are going to play a key role in the order expansion for homebuilders going forward."
Yes, but: "There's little sign of a Levittown-style surge of modest-home construction to magically solve the inventory problem anytime soon," Matt writes.
- Plus, even if costs come down, mortgage rates remain relatively high.