It’s too early in 2011 to see what this year will hold for new construction, but I’ll admit I feel cautiously optimistic to at least begin to witness some sparks of home building in the Sacramento area. Whether a few new houses in Anatolia, Empire Ranch, Ironworks, The Islands at Riverlake (Pocket Area) or Serenity Cove in West Sacramento, it’s been nice to personally spot new houses being built or planned. After construction nearly dropped off the face of the earth in the Sacramento area over the past few years, it would be warmly welcome to see that trend turn around.
The graph is based on data from the United States Census Bureau for the number of permits pulled for new construction of single family residential properties.
Unpacking the Comparison of Building Permits:
- It’s easy to see the very significant decline in building permits for both Sacramento County and Placer County over the past several years.
The history of permits in both counties seems to follow the same pattern in terms of an increase from 2000-2005 and then a major decrease from 2005 onward.- Sacramento County did have a much larger spike in production during the peak years. This makes sense when considering how many new subdivisions were built in Elk Grove, Rancho Cordova and pockets throughout the county.
- While Sacramento County had more building permits pulled than Placer County from 1994-2008, Placer County narrowly surpassed Sacramento County in both 2009 and 2010 in total number of permits.
Where have you seen new construction lately in the Sacramento area? Where would you like to see it? What stands out to you about the graph? Will we see more permits pulled in 2011 than 2010?
If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.