Permits for residential construction are up 14% compared to a year ago, according to Census Bureau data, showing that development of new-home communities is ramping up amid surging buyer demand. Permits are a gauge of future home construction. “Builders are looking to grow wherever they can right now,” Rick Palacios Jr., an analyst with John Burns Real Estate Consulting, told realtor.com®. “COVID-19 has ignited demand in markets where there wasn’t really a lot of demand before.”
Realtor.com® researchers found that the biggest upticks in new-home construction are in the South and West, most notably the Sun Belt. Fueling the trend in these areas are growing populations, strong economies, and lower costs of living. These areas also tend to have fewer restrictions on construction, researchers say. Realtor.com® identified the following markets as seeing the highest increases in permits for single-family homes, condos, co-ops, apartments, townhomes, and duplexes. (The site limited its list to one metro per state to ensure geographic diversity.)
1. Dallas
- Median list price: $373,267
- One-year change in permits: 23%
2. New York
- Median list price: $629,500
- One-year change in permits: 2%
3. Phoenix
- Median list price: $469,500
- One-year change in permits: 9%
4. Washington, D.C.
- Median list price: $499,900
- One-year change in permits: 30%
5. Atlanta
- Median list price: $377,500
- One-year change in permits: 1%
6. Los Angeles
- Median list price: $1,184,500
- One-year change in permits: 7%
7. Seattle
- Median list price: $672,386
- One-year change in permits: 38%
Source: “Raising the Roof: Here Are the 10 Cities That Will Dominate Home Construction in 2021,” realtor.com® (March 29, 2021)
