If it feels like you’re seeing new construction signs everywhere lately, you’re not imagining it — builders have been active. But some homeowners are wondering: Are we building too much, like before the 2008 housing crash?
The short answer: No.
Despite what headlines may suggest, today’s builders are actually being more cautious than ever. The housing market has learned from the past — and the data proves it.
As the #1 real estate agent serving Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake, I keep a close eye on new construction trends across our region, and the reality is far more balanced than the rumors.
Builders Are Pumping the Brakes, Not the Gas
One of the best indicators of builder activity is building permits, which track new housing starts.
Before the 2008 crash, builders were rapidly increasing construction — far beyond what the market could absorb. That oversupply created a bubble that eventually burst.
Today, it’s the opposite. Building permits are trending down, not up. According to the National Association of Home Builders (NAHB), single-family permits have declined for eight consecutive months.
Builders are slowing their pace intentionally to stay aligned with buyer demand — not racing ahead.
As Ali Wolf, Chief Economist at Zonda, explains:
“Builders are still working through their backlog of inventory but are more cautious with new starts.”
That cautious approach shows they’re being proactive, not overconfident.
The Regional Picture Matches the National Trend
Across nearly every region in the U.S., single-family building permits are declining, according to the NAHB. Even in the few areas showing small increases, the growth is minimal — nowhere near pre-2008 levels.
Here in the Puget Sound area, we’ve seen more new homes hitting the market recently — but that doesn’t mean oversupply. It means buyers are finally getting more options after years of tight inventory.
Why This Isn’t 2008 All Over Again
The biggest difference between then and now is strategy.
In 2008, builders kept building despite falling demand. Today, they’re adjusting early. They’re closely tracking buyer interest, mortgage rates, and supply levels to avoid the mistakes of the past.
After years of underbuilding, the market actually needs more homes — but builders are pacing themselves to keep things in balance.
So, while you might be seeing more new construction around Tacoma, Bonney Lake, or Lake Tapps, rest assured: it’s part of a healthy market correction, not a repeat of the housing crash.
Bottom Line
Builders aren’t overbuilding — they’re strategically rebuilding balance in the housing market.
If you’re considering buying a new construction home or selling in an area where new developments are popping up, I can help you understand how these trends impact your neighborhood and home value.
