Philadelphia metro housing permits on the rise
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The Philadelphia region is on track to permit more housing units than last year, bucking a national trend, according to U.S. Census Bureau data.
Why it matters: That's a sign of progress for a region struggling to keep pace with high housing demand and suffering from a lack of affordable units, which is pricing out some buyers.
The big picture: Higher interest rates are slowing home and apartment construction across the country, according to the National Association of Home Builders.
- Labor and lot shortages are also weighing on builders, per the group's latest survey.
- Experts estimate America is short more than 3 million units of housing, either to rent or buy.
Driving the news: The Philly metro is slated to permit 14,080 new units this year, up 4% from last year.
- The region spans from Wilmington, Delaware, through Philly and its collar counties, as well as Camden, New Jersey.
Zoom in: In Philly proper, more than 1,650 units of new housing were approved for construction through June, according to preliminary data from the U.S. Dept. of Housing and Urban Development.
- But that's down about 14% compared to the 1,923 new units in 2023.
Flashback: The past years' totals pale in comparison to 2021, when building permits soared to nearly 25,260 — the highest on record.
- The spike that year was largely driven by developers rushing to cash in on the city's expiring property tax abatement, which shrunk at the start of 2022.
State of play: While the Philly metro's housing market remains competitive and expensive, inventory is rising.
- Half the homes sold in July were on the market for less than 11 days and the median sale price was up 7% compared to last year, per Bright MLS' most recent housing report.
- But active listings were up 18% across the metro in July compared to the same period last year, with the biggest gains seen in the suburbs, including Delaware County and Mercer County, New Jersey.
What we're watching: Falling mortgage rates could draw in more sellers and buyers into the market through the rest of the year, Bright MLS notes.