How are building permits trending?

The pace of home-building in Dane County is actually quite slow when viewed over the arc of the last 20 years. Take a look at this chart which shows the number of housing starts in Dane County for every October since the year 2000. 

The impact of slow home construction

A low supply of new construction homes is one of the main reasons why we expect high prices and low inventory for many years to come. Here are 6 other local trends which we see driving the market in this direction: 

• New condominium construction has slowed to a near standstill, and is far below what is needed to satisfy the demand for condos in the Madison area. 
• Dane County foreclosures are occurring at an historically slow pace. 
• Many homeowners, who would otherwise choose to sell, are opting to stay in their current home along with their 3 percent mortgage rate.
• Dane County is currently the fastest-growing region in the state, and our local population is projected to grow by more than 200,000 residents over the next 30 years. 
• The City of Madison is listed at the top or near the top of many lists that rank the best places to live in America. 
• Climate change and Madison's reputation as a "climate haven" are enhancing our region's status as a top relocation destination. 

All of these themes are a great reminder to us of how important it is to not get caught up in the national headlines and to focus on our local trends instead. Stay tuned for much more of our market insight in the weeks and months ahead. We'll have plenty of timely and helpful updates to share with you.