: These are the top 5 markets where builders are constructing the most single-family homes

by | Feb 1, 2023 | Stock Market

LAS VEGAS — The United States may be short of homes, but builders keep on building. But where are these new homes coming up? Research from the National Association of Homebuilders (NAHB) reveals that the top five markets where builders are building the most single-family homes.

The NAHB looked at permits issued through November 2022 and compared it to the year before. 
Houston, Texas

Dallas, Texas

Phoenix, Ariz.

Atlanta, Ga.

Austin, Texas

All these five markets posted declines, which shows the extent to which buyer demand has slowed. 

These are the markets where the highest number of building permits have been issued for single-family housing.

Screenshot from NAHB presentation.

The number of permits applied in Houston fell by 6% in November 2022 compared to the year before; they also fell by 11% in Dallas and by 21% in Phoenix. Even though the pace of permits being applied for new construction has slowed, Houston and Dallas alone are building 40% more homes than those being currently built in the whole of California, Dietz said. Dietz said areas of the country driven by good affordability or underlying population growth continue to show strength in single-family homes. In fact, more than half of the single-family construction that’s being planned is located in the south, he added.  “That’s not to say there are pockets of strength elsewhere in the United States,” Dietz stressed. He cites the I-70 corridor, which includes cities such as Columbus, Indianapolis, St. Louis and Kansas City and “pockets of strength” in the Midwest, in places like Des Moines. “It doesn’t surprise me, these are the areas where you can build unlike many other areas,” Selma Hepp, chief economist at CoreLogic, said in an interview on the sidelines of the International Builders show organized by the National Association of Home Builders in Las Vegas. “These are the areas that have ranked in the top for the past few years — even before the pandemic,” she added. Write to Aarthi Swaminathan at aarthi@marketwatch.com

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