- A New Report from Realtor.com found South Carolina, North Carolina and Idaho are the top three states leading the new
construction activity and affordability rankings
- New Construction Nationally is Helping Add Needed Inventory
and Affordable Options
SANTA
CLARA, Calif., Sept. 18,
2024 /PRNewswire/ --
Today, Realtor.com® launched a brand new report
"New Construction Insights," which found South Carolina, North Carolina and Idaho lead the way when it comes to new home
construction. This report creates a ranking for states looking at
volume, affordability, and future growth of the new construction
inventory and found that the top ten states are located South or
West regions with the Carolinas leading the way.
"This will come as no surprise as the South and West have the
fastest growing overall levels of inventory," said Joel Berner, senior Economist,
Realtor.com® "For prospective buyers interested in
purchasing a newly built home, these ten states have more newly
built options that are more affordable, and fastest-growing. In
other parts of the country, purchasing a newly built home may be
more challenging until new construction activity picks up."
Top Ten States for New Construction Activity and
Affordability
|
New Construction
as a Share of Total
Listings Rank
|
New Construction
Premium per
Square Foot Rank
|
Permits per
Capita
Rank
|
Average
Rank
|
|
South
Carolina
|
4
|
2
|
2
|
2.67
|
|
North
Carolina
|
1
|
6
|
3
|
3.33
|
|
Idaho
|
3
|
9
|
1
|
4.33
|
|
Arizona
|
10
|
5
|
5
|
6.67
|
|
Utah
|
5
|
13
|
7
|
8.33
|
|
Florida
|
20
|
3
|
4
|
9.00
|
|
Delaware
|
2
|
18
|
8
|
9.33
|
|
Texas
|
6
|
15
|
9
|
10.00
|
|
Tennessee
|
8
|
16
|
10
|
11.33
|
|
Georgia
|
9
|
14
|
12
|
11.67
|
*Each state is ranked according to three criteria: the share
of listings in each state that are new builds, the price per square
foot premium on those new builds versus existing home listings
(ranked lowest to highest), and the number of permits for new
single-family homes per capita issued in each state. Rankings are
then averaged to get a sense of the volume, affordability, and
future growth of the new construction inventory.
Across the United States, new
home prices are lower than existing homes and down considerably
from the peak in July of 2022. Affordability of new homes is
largely driven by builders who are building smaller and more
affordable homes to meet the demand. For example, homes built in
2024 are 8% smaller or 163 sq ft smaller, which is roughly a
12X12ft room, than homes built in 2022. However, new builds are
still bigger than most existing homes
"Nationwide, builders have responded to the gap in existing home
affordability by building smaller, lower-priced homes and are a
major driver of this year's leveling-off of listing prices," said
Joel Berner, senior Economist,
Realtor.com®. "In the years since the Great Recession,
the pace of household formation in the
United States has far exceeded the rate of homebuilding,
resulting in a supply shortage of over 7 million single-family
homes at the end of 2023. There is a clear and present need for
newly built homes to meet the demand for housing, and this
construction is an important contributor to overall economic
activity."
This report was launched as a part of the Realtor.com's New
Construction Days of Deals event, to learn more visit:
https://www.realtor.com/new-construction-days-of-deals and to learn
more from our economics team, visit our
site https://www.realtor.com/research/
Methodology
Realtor.com housing data as of
August 2024. Listings include the
active inventory of newly built single-family homes and
condos/townhomes/row homes/co-ops for the given level of geography
on Realtor.com. Realtor.com data history goes back to July 2016. For the permits per capita criterion
of the state rankings, permitting and population data come from the
most recent releases by the US Census Bureau.
About
Realtor.com®
Realtor.com® is an
open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real
estate more than 25 years ago. Today, through its website and
mobile apps, Realtor.com® is a trusted guide for
consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner
for business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq:
NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more
information, visit Realtor.com®.
Media Contact: Mallory Micetich,
press@realtor.com
View original
content:https://www.prnewswire.com/news-releases/where-is-new-construction-creating-affordable-housing-options-look-to-the-south-and-the-west-302251093.html
SOURCE Realtor.com