Single Family Building Permit Data Analysis

The housing market bubble across the US peaked in 2005 and hit a disastrous low by 2009. In 2005, the nation had 1.7 million single family residential housing starts—by 2011 there were just 431,000 single family housing starts nationwide.[1] New single family home sales are still down 77 percent from the 2005 levels; existing single family home sales are down 34 percent from 2005 as well.[2] Although the Dallas-Fort Worth metroplex is cited today as one of the top US job markets,[3] the region was still dramatically affected by the housing crisis. From 2006 to 2009, the number of single-family housing starts in DFW decreased by 70 percent.[4] The number of production homebuilders in North Texas who build at least 50 homes a year decreased by more than half in the same time period.[5]While DFW, and Texas in general, was not as hard hit as states like Florida, Nevada, and California, more than 71,714 homes were foreclosed from 2008 to 2011 in DFW.[6] However, DFW home prices are starting to stabilize and are up 1 percent since 2006.[7] The impact of the housing crisis and the benefit of Dallas Habitat’s Neighborhood Stabilization Program (NSP2) activities can be seen from the City of Dallas’ building permit data from 2005 to the present.

The data reported here is from the City of Dallas’ Department of Sustainable Development and Construction. The data covers the period from January 1, 2005 through July 31, 2012.

Across the city of Dallas, the number of single family residential building permits decreased by 78 percent from 2005 to 2009. However, from 2009 to 2011, the number of permits issued increased by 10 percent. By contrast, from 2009 to 2011, the number of residential building permits issued to Dallas Area Habitat for Humanity increased by 57 percent. In 2005, Dallas Habitat made up 2.2 percent of all residential building permits issued in the city; in 2011, Dallas Habitat made up 15.7 percent of residential building permits. One out of every seven residential building permits in Dallas was issued to Dallas Habitat in 2011.

Dallas Area Habitat for Humanity traditionally focuses its building efforts in distressed neighborhoods in Dallas. As part of its NSP2 activities, Dallas Habitat continued that emphasis as well as adding building efforts in unfinished or “zombie” subdivisions. Because of that emphasis, Habitat’s impact on these target areas was even more significant. From 2005 through the first half of 2012, Dallas Habitat accounted for 49% of the single-family build permits issued in its target areas.

The sections below describe the impact on building permits in six census tracts in which Dallas Habitat constructed homes, both through the NSP2 program and through donor funding. When reviewing the City building permit data, it is important to note some important features of the permitting process. First, the square footage shown on the building permit is for everything under the roof, including the garage. The reader should keep in mind that the reported square footage is larger than the actual living space. In addition, for some of the years reported, the City of Dallas required that the value of the building permits be based on the market value. For Dallas Habitat homes, the result is that the average value indicated for the Habitat homes is higher than the actual sales price.

Oak Cliff Gardens (Census Tract 87.03)

Dallas Habitat was issued 34 of the 69 total single family building permits in Oak Cliff Gardens from January 2005 toJuly 2012. According to the building permit data, the average value of all homes built during this time period in the neighborhood was $98,236 and the average value of Dallas Habitat homes was $100,185. The average sales price of Habitat homes in Oak Cliff Gardens from 2005 to July 2012 was $74,286. The average square footage for all single-family residential permits issuedin this neighborhood was 1,551 square feet; the average square footagefor all Dallas Habitat permits issued was 1,631 square feet. Other developers in the area that were issued building permits during this time period includeAltura Homes, B. Nortons Investments, and Bethel Construction.

Los Altos (Census Tract 101.01)

Dallas Habitat was issued 97 of the 251 (38.6%) total single family building permits in Census Tract 101.01 from January 2005 to July 2012. According to the building permit data, the average value of all homes built during this time period in the neighborhood was $101,362 and the average value of Dallas Habitat homes was $100,097. The average sales price of Habitat homes in neighborhood during the period was $86,072. The average square footage for all permits was 1,608 square feet and 1,689 square feet for all Dallas Habitat permits. Other developers in the area that were issued single family residential building permits during this time period include Bethel Construction, Builders of Hope, Myrmidon Construction, and Texan Certified Homes.

Mill City (Census Tracts 27.01 and 27.02)

From 2005 to July 2012, DAHFH received 64 out of the 111 total single-family building permits in the area. The average value of all single family building permits was $90,607 and the average value of DAHFH permits was $83,041. The average square footage for all building permits was 1,642 square feet and the average square footage for DAHFH homes was 1,624 square feet. During the period, Dallas Habitat built 40 homes in the Frazier Courtyards subdivision with an average sales price of $79,606. The remainder of the homes built by Dallas Habitat in the census tracts were in the Mill City infill area with an average sales price of $78,468. Other developers that were issued single family residential building permits during this time period include Bethel Construction, Davis Woodmere, and North Texas Consolidated Development.

Bonton (Census Tract 115)

From 2005 to July 2012, DAHFH received 68 out of the 166 (41%) single-family building permits issued for the census tract. The average value of single-family permits issued in Census Tract 115 during the period was $152,351 and the average value of DAHFH permits was $90,656. The average sales price of Habitat homes in Bonton during the period was $73,820. The average square footage for all building permits was 2,267 square feet and the average square footage for DAHFH homes was 1,616 square feet. K B Homes was the other major developer in the census tract during this time period. It is important to note that census tract 115 includes an area some distance from the Bonton neighborhood which may skew the average price and size.

Hickory Creek (Census Tract 170.01)

Dallas Habitat was issued 77 of the 101 total residential building permits in Census Tract 170.01 from January 2005 to July 2012. All 77 of Dallas Habitat’s permits were issued in 2011. (Dallas Habitat actually built 81 homes in the neighborhood during this time period, so 4 build permits were recorded incorrectly or are missing from the City’s database.) According to the building permit data, the average value of all homes built during this time period in the neighborhood was $108,519 and the average value of Dallas Habitat homes was $97,338. The average square footage for all permits was 1,965 square feet and 1,944square feet for all Dallas Habitat permits. Other developers in the area that were issued building permits during this time period were Choice Homes and Holiday Builders.

Cedar Creek Ranch (Census Tract 167.01)

The Cedar Creek Ranch neighborhood is located in Census Tract 167.01, along I-20 and Bonnie View Rd. DAHFH received 110 out of the 364 single-family build permits issued from 2005 through July of 2012. DAHFH was actively building in the neighborhood from 2007-2010. Of the 110 build permits that DAHFH received, the majority were issued in 2010. From 2005 to July 2012, DAHFH received nearly 73% of all permits issued in the census tract. The average value of DAHFH homes built from 2005 to 2012 was $99,914, compared to $134,035 for all developers. The average square footage for all building permits issued was 2,115 square feet and the average square footage for DAHFH homes was 1,882 square feet.The average sales price of all of the Habitat homes built in Cedar Creek Ranch was $90,639. Otherdevelopers in the census tract during this time period includedAltura Homes, Dalrock Homes, History Makers Homes, K B Homes, M. Moorman Management, and Sierra Builders. (Dallas Habitat actually built 122 homes in the census tract during this time period.)

[1]The State of the Nation’s Housing 2012, Joint Center for Housing Studies, Harvard University

[2] “Housing Market Trends: Impacts and Outcomes.” Oak Cliff Chamber of Commerce Housing Summit 2012.

[3] Ibid.

[4] Ibid.

[5] Ibid.

[6] Ibid.

[7] Ibid.