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Increased demand for new housing in a specific geographic area can be an indicator of job growth and a prospering economy, while a halt in demand in new housing might signify an economic slowdown. Using data from the U.S. Census Bureau Building Permit Survey, researchers from Construction Coverage identified the metropolitan areas in the nation that are investing the most funds in new housing.
For each metropolitan area, the company calculated the number of building permits that were issued per capita for the last 12 months, and then compared it to the national average. Notable trends from the recent trailing 12 months of data show that builders constructed approximately 40 new residential units per 10,000 residents. Moreover, in the largest metros, the range in per capita residential construction varied from below one unit to more than 130 units per 10,000 residents.
According to the report, there is a strong correlation between new housing development with population and employment growth. Therefore, areas that have the most per capita residential construction projects are more likely to have high employment and population growth.
Other noteworthy relations include a positive correlation between home values on the Zillow Home Price Index and investment in residential real estate projects. However, changes in median earnings were not correlated with new housing investment.
Cities Investing the Most in New Housing
- Austin – Round Rock, TX
- 137.1 new housing units (per 10K residents)
- North Port-Sarasota-Bradenton, FL
- 131.9 new housing units
- Raleigh, NC
- 125.9 new housing units
- Cape Coral-Fort Myers, FL
- 124.1 new housing units
- Boise City, ID
- 122.3 new housing units
- Provo-Orem, UT
- 118.7 new housing units
- Orlando-Kissimmee-Sanford, FL
- 113.1 new housing units
- Durham-Chapel Hill, NC
- 95.7 new housing units
- Nashville-Davidson-Murfreesboro-Franklin, TN
- 95.0 new housing units
- Charlotte-Concord-Gastonia, NC-SC
- 93.6 new housing units
Read the full list of cities here.