PHOENIX — While single-family homebuilding permits in metro Phoenix have been down this summer, they're still a whopping 27% higher than this time last year.
Valley municipalities issued 22,535 homebuilding permits between January and August, up from 17,759 during the same period in 2020, according to the Home Builders Association of Central Arizona.
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.
Steven Hensley, advisory manager for Zonda, said that the downward trend in metro Phoenix has been happening since June.
Despite the downward trend over the past few months, he 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."