While 70 percent of U.S. metro areas issued more permits for single-family home construction in 2016 than in 2015, several pricey markets went the other way.
NAR’s Economists’ Outlook blog reports that New York City, San Diego, and Miami are among the markets that issued fewer permits for single-family units last year. These cities also had higher construction cost per unit rates in 2016 than in 2015.
Fewer homes are being built, according to NAR, because construction costs are rising. Labor is expensive, as is land and material costs.
New home construction is the main way that the nation can get out of its inventory shortage, and provide housing at affordable prices for middle- and lower-income residents.
Logan, Utah, Gettysburg, Pa., Merced, Calif., Harrisonburg, Va., and Valdosta, Ga., are among the markets that had significant increases to the amount of building permits issued last year.
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