Dallas-Fort Worth residential building permits drop again
Building permits for single-family homes in North Texas fell again in January, signaling that supply chain issues and labor shortages will continue to affect housing inventory over the course of the new Year.
Homebuilders filed 4,044 building permits in January, down 9% from January 2021, according to new figures from Texas A&M University’s Texas Real Estate Research Center.
January marked the sixth consecutive month that Dallas-Fort Worth homebuilders took out fewer permits to start homes than the year before.
“There is absolutely no problem with sales and demand – it continues to be hot, and there is hardly any inventory there,” said Ted Wilson, director at Residential Strategies, housing analyst based in Dallas. “But it’s incredibly difficult right now due to labor shortages and supply chain issues.”
Last year, D-FW builders started a record 58,140 single-family homes, up 20% from 2020 production, according to Residential Strategies. But housing starts in the fourth quarter fell nearly 7% year over year as builders focused on completing homes already in the pipeline. Most builders have backlogs of homes sold that have had construction delays.
Bryan Glasshagel, senior vice president of housing research firm Zonda, said he expects builders to continue to face supply chain issues throughout the year. . This involves everything from windows to garage doors and appliances, all of which can delay the construction process.
Glasshagel said supply chain and labor challenges also affect land development and infrastructure works.
“Each step of the process, from getting a right to closing a house, takes a little longer,” Glasshagel said.