Hammertime? Not so much in Dallas-Fort Worth suburbs, where homebuilding is plunging - Dallas Business Journal

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Housing permits are down nationwide, but not as sharply as they are in North Texas.

The buzz of a circular saw, the crack of a nail gun and the whir of a power drill haven't gone silent, but they're not as prevalent as they were earlier this year. The smell of a freshly poured concrete slab is getting harder to find.

That means 1,307 homes have received the necessary city approvals for construction year-to-date in Celina, down from 2,118 in the first nine months of last year. Frisco home building permits are down to 1,162 so far this year from 1,659 at this time last year. Princeton's permits are down to 898 through the end of September from 1,256 permits through Sept. 30, 2021.according to data compiled by Addison-based Tomlin Investments, which tracks new home construction north of Dallas-Fort Worth.

Across North Texas, DFW homebuilders decreased new home starts by 34% in the third quarter of this year compared to the same three-month period in 2021, according to Dallas-based housing market data firm Residential Strategies Inc. With 30-year fixed-rate mortgage rates hitting 7% this week, would-be buyers who are renting can no longer afford monthly payments on a new home, and prospective move-up buyers don’t see the logic in trading a rate of around 3% for one that’s more than twice as high, said Cassiemonthly payments on houses are now more than 50% higher than they were in January of this year.

 

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