Experts have said time and again that increased new residential construction is the key to bolstering inventory levels and slowing home price growth. So, exactly what role did homebuilders play to aid America’s inventory issue?
According to Trulia’s latest study, homebuilders have been quite busy — especially those in San Francisco, Austin, Boston, Nashville and Philadelphia, where they surpassed their historical permit averages by at least 62 percent.
San Francisco rose to the top by approving 94.6 percent (6,270) more homes in 2017 than its average between 1980 and 2016. A little more than six percent (6.8) of those permits were for single-family homes, 1.2 percent were for mid-density properties with 2–4 units and 91.9 percent were for high-density properties with five units or more.
Although the uptick in building permits is good news, Trulia senior economist Cheryl Young says the results have to be put in perspective.
“Generally, San Francisco doesn’t build that much,” Young said in a phone interview with Inman. “So while that news is really good for San…