Personal Finance By Elena Cox 901 Views

Raising the Roof: Here Are the 10 Cities Building the Most Homes for Buyers

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As we enter Year Two of the coronavirus pandemic, home buyers seeking more space or a sanctuary of their own are struggling to find properties for sale. The number of listings for available homes is about half of what it was a year ago—and pickings were slim even then. Like it or not, it’s the new real estate math: Rising demand plus shrinking inventory equals vexed buyers, desperate for solutions.

So why aren’t people just building more new homes? A whole lot of them?

Well, after slowdowns in new home construction that stretch all the way back to the late aughts housing crash, newly built communities and custom-built residences in many cities are indeed ramping up again. Builders applied for 14% more permits this year than last, according to U.S. Census Bureau data—a good indication of where new construction is going to be popping up as it usually takes about seven months from start to finish to build a house.

With the demand for housing leading to soaring prices and crazy bidding wars, the realtor.com data team took a look at which parts of the country could, just maybe, get some relief with some brand-new inventory .

The areas experiencing much of the new construction are often in the South and the West, particularly the Sun Belt. These are places with growing populations due to strong economies marked by lots of jobs and often—but not always—lower costs of living. They also tend to have more land available and fewer restrictions on construction.

The pandemic has exacerbated these trends. After staying at home for roughly a year, many folks are jonesing for more space. Suburbs and more rural areas, where there’s room to put up larger homes, have become more popular than condos in the big, expensive cities. And as white-collar workers from more expensive parts of the country are able to work remotely, they’re seeking larger homes farther out.

“Builders are looking to grow wherever they can right now,” says 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.”

The problem: Even those builders who have boosted production simply can’t meet the voracious demand for real estate. As the housing market has improved, it’s becoming more difficult to secure skilled labor and materials, especially lumber.

“I don’t think they can keep up with this pace, simply because of the supply-side issues,” says Danushka​ Nanayakkara‑Skillington, associate vice president of forecasting and analysis at the National Association of Home Builders.

So where are the new homebuilding boomtowns? We analyzed the data to find where builders filed the most permits to put up single-family homes, condos and co-ops, apartments, townhouses, and duplexes. We limited our list to one metro per state to ensure geographic diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)

Grab your hard hats, and let’s check out some new construction!