Single-family permits through the first seven months of the year have fallen 4.7% from July 2018, according to new information from the National Association of Home Builders.
The NAHB states that single-family permits issued nationally reached 496,726. Permits issued during the same time last year totalled 521,438.
The report states that all four regions saw declines in single-family permits, with the largest drop coming in the midwest at 8.7%. Single-family permits issued in July fell 1.6% in the northeast, 2.8% in the south, and 7.7% in the west.
Only 13 states and the District of Columbia recorded year-over-year growth in single-family housing in July. The largest increase in single-family permits was the District of Columbia at 77.3%. Montana had the highest annual drop at 25.1%
The NAHB reveals that the 10 states issuing the most single-family permits combined for 60.9% of the total single-family permits issued.
Permits issued for single-family housing isn’t the only sector struggling, as Zillow previously reported that single-family construction has yet to recover following the Great Recession, and shortages are expected until 2022.
The survey, commissioned by both Zillow and Pulsenomics, found that a majority of economists and real estate experts foresee new single-family construction to remain under a 1 million-unit pace for the foreseeable future.
The survey polled more than 100 economists, investment strategists, and real estate experts for their predictions of the U.S. housing market.
Zillow states that single-family housing starts have averaged more than 1 million units a month, and reached its peak of more than 1.8 million in 2006 before falling during the Great Recession.
While most see 2022 as the cutoff point for construction shortgages to end, some surveyed push this off until 2029. One in five surveyed believed 1 million units will be reached by the end of the year, and a quarter are targeting 2021.
Zillow also reported that the builders’ eagerness to increase activity is tied to future home value growth. Those surveyed have lowered growth projections over the past year, as they anticipate home values to grow 3.6% in 2019, then slow to 2.5% in 2020. Home values are expected to continue falling in 2021 to 2.2%