Key Details:
- Data by the National Home Builders Association shows the top 10 markets for single-family home construction, the majority of which are in the southern U.S.
- Year-over-year, the number of building permits for single-family homes has decreased in all but one market on the top 10 list.
We’ve shared top 10 lists for emerging housing markets, markets for first-time home buyers, affordable markets, and even markets for luxury second homes.
But what about the top markets for new construction?
MarketWatch recently put out an article that details the top largest single-family markets, with data collected from the National Association of Home Builders (NAHB).
Let’s dive in.
Top Markets for Single-Family Construction
At its recent conference, the International Builders Show in Las Vegas, the NAHB shared data regarding the top markets for single-family homes. This list is based on the number of permits issued through November 2022.
Here are the top 10 largest single-family markets for new construction:
- Houston-TheWoodlands-Sugar Land, TX
- Dallas-Fort Worth-Arlington, TX
- Phoenix-Mesa-Scottsdale, AZ
- Atlanta-Sandy Springs-Roswell, GA
- Austin-Round Rock, TX
- Charlotte-Concord-Gastonia, NC-SC
- Orlando-Kissimmee-Sanford, FL
- Tampa-St. Petersburg-Clearwater, FL
- Nashville-Davidson-Murfreesboro-Franklin, TN
- Jacksonville, FL
Most markets on the list are in the southern U.S., where affordability and lifestyle continue to attract buyers willing to migrate from other parts of the country.
Decrease in Building Permits
Even though inventory remains an issue, demand for newly constructed homes has eased—at least when you look at the number of permits issued year-over-year.
In all but one of the markets on the top 10 list, the number of permits issued decreased compared to the year before.
- Houston-TheWoodlands-Sugar Land, TX: -6% decrease in permits
- Dallas-Fort Worth-Arlington, TX: -11% decrease in permits
- Phoenix-Mesa-Scottsdale, AZ: -21% decrease in permits
- Atlanta-Sandy Springs-Roswell, GA: -14% decrease in permits
- Austin-Round Rock, TX: -8% decrease in permits
- Charlotte-Concord-Gastonia, NC-SC: 1% increase in permits
- Orlando-Kissimmee-Sanford, FL: -7% decrease in permits
- Tampa-St. Petersburg-Clearwater, FL: -18% decrease in permits
- Nashville-Davidson-Murfreesboro-Franklin, TN: -3% decrease in permits
- Jacksonville, FL: -11% decrease in permits
Robert Dietz, chief economist of NAHB, stated in a press conference that even though the number of permits is down overall, Houston and Dallas “are building 40% more homes than are currently built in the whole of California,” according to the article by MarketWatch.
Data shows that builders continue to focus on building in the south and pockets of the midwest. As long as affordability remains an issue, people will continue to search for areas that are a better fit for their budgets. But, as prices for building materials also remain high, builders are pulling back on permits—which means low inventory will likely be a continuing trend.
