New-home construction is poised to break ground at faster rates in several markets across the country. This could open up housing inventory in some places starved for more homes for sale.
“Adding new homes is key to a city’s economic health,” says Robert Dietz, chief economist at the National Association of Home Builders. The bulk of the new-home construction is occurring in the South and Southwest, where land and construction costs tend to be less expensive, he says.
For home buyers, new homes tend to be about 26 percent more expensive than existing homes, but some buyers are lured to new, despite the extra costs.
Realtor.com®’s data team identified the following markets where new-home construction is picking up at the fastest rates:
1. Dallas
- Median list price: $335,700
- Number of permits: 63,421
2. Houston
- Median list price: $310,100
- Number of permits: 57,021
3. New York
- Median list price: $525,100
- Number of permits: 48,384
4. Atlanta
- Median list price: $313,300
- Number of permits: 39,132
5. Phoenix
- Median list price: $337,500
- Number of permits: 31,343
6. Los Angeles
- Median list price: $714,500
- Number of permits: 29,621
7. Austin, Texas
- Median list price: $349,800
- Number of permits: 29,716
View the full list at realtor.com®.Source: “These 10 Cities Will Dominate Home Construction in 2019,” realtor.com® (April 1, 2019)
