Redfin Reports Austin, Raleigh and Other Popular Sun Belt Metros Lead the Nation in Homebuilding
The 10 metros building the most single-family homes are all located where home prices have skyrocketed as people move in from other parts of the country
Five other
For multifamily properties, the top 10 list is split between
All in all, 49 of the 53 U.S. metros with more that 1 million residents issued more single-family building permits per capita in the first quarter than they did on average in the 10 years prior to the pandemic (2010-2019). Thirty-eight of them issued more multifamily permits.
Homebuyer demand has started cooling, housing supply is declining at a slower pace than it was at the peak of the pandemic and sales of new homes are down. But the number of homes for sale remains near all-time lows and monthly mortgage payments are near their record high, partly due to mortgage rates that have risen from roughly
“If there had been enough homes at the start of the pandemic, housing costs might not have skyrocketed the way they did over the past two years,” said Redfin Chief Economist
Home prices are skyrocketing in
While more new construction increases the total number of homes on the market, new homes are more expensive. The typical newly built home nationwide sold for
Rents are surging in metros building the most multifamily units
The story is similar in the rental market, with outsized price growth in five of the top six metros with the most multifamily building permits per capita.
There’s a relative lack of homebuilding in places homebuyers are leaving
On the other end of the spectrum,
Signs point to a nationwide increase in homebuilding
The pandemic-driven homebuying boom intensified an existing housing shortage, drove up home and rental prices and brought the need for newly constructed homes sharply into focus.
“We built fewer homes in the 2010s than we have since the 1960s, which is one of the fundamental problems with today’s housing market—especially with millennials, the biggest generation, now in their prime homebuying years,” Fairweather said. “Builders were hit hard by the housing crash—and home construction didn’t fully recover because of a combination of rising material and labor costs and restrictive zoning. Since the start of the pandemic, builders have run into additional problems, with a shortage of materials and skyrocketing lumber costs. As a result, the
There are promising signs that homebuilders are making progress adding new supply.
Builder sentiment fell to a two-year low in May. Still, the outlook for building new homes is better than it was a year ago. If mortgage rates continue to plateau, builders may feel more confident in the outlook for demand.
To view the full report, including a metro-level table and methodology, please visit: https://www.redfin.com/news/metros-building-new-construction-Q1-2022/
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Source: Redfin