BAM Key Details:
- Realtor.com analyzed Census Bureau’s 2022 new-home construction permit data for single-family homes to determine the top metros for new home construction per capita.
- The majority of metros on this list are located in the South, where land is more available and the cost of living is more affordable.
The struggle for home buyers today persists: a lack of inventory and high home prices makes it difficult to find affordable homes.
Part of the issue is a decrease in new construction over the years. In 2022, there was a 14% decrease in new-home construction permits for single-family homes compared to 2021. And since the 1990s, U.S. housing starts are about half of what they were for the 30 years prior.
After the 2008 housing crash, new home construction really slowed down—and again during the COVID-19 pandemic. Even with an increase in housing starts in February, there remains an estimated shortage of up to 6 million homes.
But just like there are more opportunities in top markets for buyers and sellers, there are top markets for new homes. Let’s take a look at Realtor.com’s top metros for new single-family home construction.
Top 10 Metros with the Most New Home Construction Planned
To determine which metros will see the most new-construction homes this year, Realtor.com analyzed the Census Bureau’s 2022 new home construction permit data for single-family homes. From there, they determined which areas have the most permits per capita (keeping the number of new home permits relative to the local population).
The complete list is limited to one metro per state (for geographic diversity), and each metro includes the main city and surrounding towns, suburbs and smaller urban areas.
Based on Realtor.com’s analysis, here are the top 10 markets for new home construction:
- Myrtle Beach, SC – 11,550 single-family new-home construction permits in 2022
- Ocala, FL – 5,318
- Salisbury, MD – 4,271
- Fayetteville, AR – 5,435
- Austin, TX – 20,289
- Raleigh, NC – 12,494
- Boise, ID – 5,913
- Provo, UT – 5,136
- Nashville, TN – 15,189
- Gulfport, MS – 3,055
For everyone keeping up with relocation trends, this list falls right in line with what we’ve been seeing over the last couple of years. People continue to move to pandemic hot spots (like Boise and Austin) and areas in the South where there are more affordable options.
And while new home construction is typically more expensive than existing homes, the benefits of a brand new home—along with builder incentives—means these homes are getting scooped up quickly.
Builders are simply following where more Americans are moving. These are fast-growing cities, with a lot of lifestyle amenities and a lot of young people and professionals moving in. Builders have recognized this and are trying to catch up to this incredible growth.