Portland homebuilder permits rise amid COVID fluctuation

Nearly 45 new homebuilding permits per 100,000 residents were issued in the Portland metro area in May 2023, up from just over 27 in May 2020, early in the COVID-19 pandemic.

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 could bring prices down.

By the numbers: Of the 1,111 total permits issued in the Portland area this past May, 611 were for single-family homes, 12 for buildings with up to four units and 488 for those with five or more units, per a new analysis of Census Bureau data.

The big picture: Portland's figures varied significantly month-over-month compared to the country, and in May outpaced the national rate.

• Nationally, about 42 new homebuilding permits per 100,000 residents were issued in May 2023, up from about 33 in May 2020.

By the numbers: In May 2023, 139,600 total permits were issued across the U.S. — the majority of which (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 thus priced for) relatively wealthier 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 Axios.

Yes, but: Even if costs come down, mortgage rates remain relatively high.