Over the past year, higher home prices and rising mortgage rates have made it increasingly difficult for homebuyers to afford a home. At the core of the imbalance between purchasing power and home values is the ongoing housing shortage. Put simply, fewer home listings lead to increased demand and soaring prices.
The low inventory levels we are currently seeing in markets across the country did not happen overnight, however. New-home construction permits for single-family dwellings have been declining since the 1990s. According to Realtor.com, the gap between single-family home constructions and household formations grew to 6.5 million homes between 2021 and 2022.
While many parts of the country are experiencing a shortage of new homes, some regions are still seeing new developments that are helping to meet buyer demand, particularly in more affordable areas where budgets can go further. Realtor.com has recently identified these markets where builders are actively constructing new homes. Many of these cities are located in the South, especially in areas where land is abundant, fewer building regulations apply, and employment opportunities abound.
Here are the top 10 metros with the most new-construction homes planned:
- Myrtle Beach, SC
- Ocala, FL
- Salisbury, MD
- Fayetteville, AR
- Austin, TX
- Raleigh, NC
- Boise, ID
- Provo, UT
- Nashville, TN
- Gulfport, MS
It is no secret that new-construction homes are generally more expensive. But as the real estate market has sputtered in light of the uncertain economic outlook, more builders are willing to offer price cuts and offer incentives such as mortgage rate buy-downs, which can make a huge difference in a buyer’s budget.
Whether you are interested in purchasing a new home or a pre-existing home, I would love to talk with you about your home financing options. Call me today to set up an appointment.
