New home permits surge in Metro Phoenix to No. 3 in nation

Arizona’s blockbuster new home permit figures, which include megadevelopments like Eastmark (above) in the far East Valley, also highlight the challenges facing Arizona such as water use, the availability of materials like lumber and cement, social equity/political representation, sustainable energy resources, environmental integrity, and other quality of life issues.

A new report from the National Association of Realtors shows that Metro Phoenix/East Valley placed third just behind the Dallas/Fort Worth/Arlington and the Houston/Woodlands/Sugarland areas for the most new home permits issued during the past year at 33,434, or 2,786 per month on average.

Housing starts surged across the county in March by 19 percent to a seasonally adjusted annual rate of 1.74 million units, the highest level since 2006, addressing an acute shortage of housing from coast to coast.

As impressive as Phoenix’s data is, the numbers pale compared to the Texas story, where more than 95,800 permits were issue between the Houston and Dallas markets during the same 12 months beginning April 2020 through March 2021.

The numbers continue a pandemic-fueled macroeconomic shift that has people on the move in the United States, opting to work from home full-time and seeking properties that better serve that purpose. The report shows that the majority of the growth is occurring in Sunbelt cities in Arizona, Texas, Florida, Georgia and the Carolinas, while the fewest permits are being issued in states in the Northeast like New York, Pennsylvania, Massachusetts and Ohio.

Arizona’s blockbuster new home permit figures, while a boon to homebuilders, construction trades and suppliers, highlights some of the challenges facing those who live in the Desert Southwest, namely water usage and consumption, raw materials such as lumber and cement, social equity/political representation, sustainable energy resources, environmental integrity, and other quality of life issues Arizonans want.