Portland homebuilder permits rise amid COVID fluctuation
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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.