Cities Where New Construction Booming

Key Highlights

• Most new construction happening in South and West
• South and West have growing populations, strong economies, vital job markets and, in the South, lower living costs

Housing Supply Not Meeting “Voracious” Demand

It’s no secret that existing housing inventories nationwide are not meeting housing demands.  Just look at the rise of intense bidding wars, cash and above listing price contracts and record low number of days on the market (DOM).

New construction, according to realtor.com, is the only way homebuyers might “get some relief.”

Can New Construction Deliver Fast Enough?

“Builders are looking to grow wherever they can right now,” said Rick Palacios, Jr., an analyst with John Burns Real Estate Consulting.  “COVID has ignited demand in markets where there wasn’t really a lot of demand before.

But…supply-side constraints are getting in the way.  Obtaining and retaining skilled labor is a problem. Materials are a problem.  And the skyrocketing costs of lumber are impossible.

The associate vice president of forecasting and analysis with the National Association of Builders (NAHB),  Danushka Nanayaklara-Skillington told realtor.com that she doesn’t think builders can maintain their current pace of building.

Metros Where Most Building Permits Filed

Limiting one metro per state to ensure geographic diversity, realtor.com determined the metros where builders have filed the most permits.  Take a look:

1. Dallas
   1. One-year change in permits: +23%
   2. Median list price: $373,267
2. New York
   1. One-year change in permits: +2%
   2. Median list price: $629,000
3. Phoenix
   1. One-year change in permits: +9%
   2. Median list price:$469,500
4. Washington DC
   1. One-year change in permits: +30%
   2. Median list price:$499,900
5. Atlanta
   1. One-year change in permits: +1%
   2. Median list price:$377,500
6. Los Angeles
   1. One-year change in permits: +7%
   2. Median list price:$1,184,500
7. Seattle
   1. One-year change in permits: +38%
   2. Median list price:$672,386
8. Philadelphia
   1. One-year change in permits: +52%
   2. Median list price:$329,900
9. Charlotte NC
   1. One-year change in permits: 11%
   2. Median list price:$386,450
10. Tampa
    1. One-year change in permits: +24%
       1. Median list price:$305,000

Thanks to realtor.com. 

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