A decrease in permits for new homes throughout Collin County is becoming an unusual trend. Development dropped in McKinney, Frisco and Propsper, but other neighboring cities are seeing an opposite reaction.
Double-digit drops for single-family homes throughout Colling County caused some to scratch their heads. Dallas’ suburbs historically makes waves with new development. People are continuing to move to these Collin County cities, so what is causing this drop?
The Dallas Business Journal explained that higher mortgage rates in 2022 created a slowed demand for new homes, making builders cut back construction.
Permits for single-family home construction in January plunged 65% in McKinney, 64% in Frisco and 63% in Prosper in comparison to January of 2022.
During the rest of 2022, single-family building permits fell 27% in McKinney, 30% in Frisco and 24% in Prosper in 2022 compared to 2021 — only 1,326 homes received the necessary approvals from the city of Frisco for construction last year, compared to 1,881 in all of 2021. McKinney’s permits were down to 1,258 in 2022 compared to 1,720 in 2021. Prosper’s permits fell to 967 homes from 1,221.
Frisco, Prosper and McKinney were not the only Collin Counties to see the drop. Anna and Princeton also saw major drops in their development: Anna fell 74% and Princeton 84%.
But not all of North Texas is seeing this drastic drop. Cities like Denton, Melissa and Little Elm were exceptions to the decrease in development.
In Denton, permits were up 28% to 1,227 homes in 2022 from 955 in 2021. Melissa was up 13% to 906 homes from 801 in 2021. Little Elm was also higher, with 1,295 new-home permits in 2022 compared to 1,292 in 2021.
Based on the continued high mortgage rates, Collin County can expect to see slowed development through the rest of the year.