Homebuilding is crucial for housing supply and price stability. Since the Great Recession, construction has lagged, keeping prices high. In Phoenix, building permits fluctuated in 2025, peaking at 4,959 in December, with 2,114 permits issued in January 2026. Nationwide, permits ranged from 1.33 million to 1.48 million in 2025, with 1.39 million issued in January 2026. Supply remains below demand, sustaining elevated prices.