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.
“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 Francisco in general, I think it should be moderated by the fact that we don’t really do that many permits.
But, it will relieve some of the inventory issues here.” Six of the 10 cities that beat out their historical average in 2017 did so by focusing more than half of their building resources on high-density units.
When it comes to sheer homebuilding volume, Dallas (47,244), Houston (42,673), New York City (40,687), Phoenix (29,653) and Austin (25,803) led the pack with at least 25,000 permits in 2017.
On the other hand, Worcester, Massachusetts (347), Allentown, Pennsylvania (408) and New Haven, Connecticut (467) fell woefully behind.
In areas such as Dallas and Houston, where builders are popping out new homes like hot cakes, Young says homebuyers and experts shouldn’t worry about overbuilding anytime soon.
“It’s going to take a lot more for prices to really go down,” she said.
“While we do see a little bit of relief coming up in 2018, we don’t see prices dropping enough to say [homes] have become really ‘affordable.’ ” “It’s still going to be a tight housing market, but there’s a little bit of a silver lining for people looking for a home.”