More new construction in the Sacramento area

New construction has been heating up in the Sacramento market. Subdivision builders have been mostly dormant since the real estate “bubble” burst, but lately they’ve been starting up again. In fact, just a few days ago the Sacramento Business Journal reported an investor purchased 960 acres in Folsom for 4,000 future tract homes. That’s good news for the prospect of future building as well as one way to increase inventory too, right?

Here are two graphs of building permit history based on United States Census Bureau information. I’d like to get data directly from the building industry too, but this will do for now. As you can see below, while building is still far below what it was during the “boom” years, the encouraging sign is that there have already been more permits pulled in 2012 (through August) than all of 2011.

New construction building permits in Sacramento County - Graph by Sacramento Appraisal Blog

Building Permits History in Sacramento County by Sacramento Appraisal Blog

NOTE: The bulk of subdivision new construction I’ve seen lately has been builders picking up where they left off. For instance, many subdivisions or streets were left unfinished when the real estate market collapsed. Most of these lots were already improved with utilities, streets and sidewalks. Builders just couldn’t finish them because of depressed values.

Where have you seen new construction lately in the Sacramento area?

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Comments

  1. Lens V. Cordova says

    That’s positive news for people around the area. If there is a boom in new construction in the next coming years, then more revenue for the city follows.

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