15 Cities Investing the Most in New Housing

Home under construction
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This story originally appeared on Porch.

Both new home sales and new home construction fell sharply in the spring, during the onset of the COVID-19 pandemic. However, both have rebounded aggressively, with new home sales back above pre-COVID levels and new home construction nearing recent highs.

This bounce-back has been fueled by a combination of low interest rates, increased demand, and a growing preference for low-density housing, according to researchers for the Federal Reserve.

At the same time that the COVID-19 pandemic shifted homebuyer demand toward low-density areas and larger homes, the lockdowns delayed peak homebuying season, creating pent-up demand for new homes. This boost in demand for new homes compounds a longer-term trend in the housing market of millennials aging and entering their prime homebuying years.

With this confluence of factors, prospective homebuyers face a difficult situation — while low interest rates are lowering the cost of a mortgage, the limited supply of existing homes is creating stiff competition for new homes and raising prices.

To see which metropolitan areas have been investing the most in new housing this year, researchers at Porch analyzed data from the U.S. Census Bureau’s Building Permits Survey. Only metropolitan areas with at least 100,000 residents and at least 70% coverage in the Building Permits Survey were included in the analysis.

To rank locations, Porch calculated the number of new housing units authorized during the first six months of 2020 per 100,000 residents. Our researchers also included the absolute number of new housing units authorized, the median home price of existing homes and the estimated value of newly authorized homes.

Following are the large metropolitan areas with the largest investment toward new housing in 2020.

15. Seattle

Seattle, Washington
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  • New housing units authorized (per 100,000 residents): 277.3
  • Total new housing units authorized: 10,922
  • Total value of new housing units authorized: $2.29 billion
  • Median home price (all existing homes): $551,311

14. Portland, Oregon

Portland, Oregon
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  • New housing units authorized (per 100,000 residents): 287.3
  • Total new housing units authorized: 7,121
  • Total value of new housing units authorized: $1.49 billion
  • Median home price (all existing homes): $425,758

13. Tampa, Florida

Tampa, Florida
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  • New housing units authorized (per 100,000 residents): 303.6
  • Total new housing units authorized: 9,541
  • Total value of new housing units authorized: $2.56 billion
  • Median home price (all existing homes): $239,208

12. San Antonio

San Antonio, Texas outdoors
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  • New housing units authorized (per 100,000 residents): 305.8
  • Total new housing units authorized: 7,699
  • Total value of new housing units authorized: $1.5 billion
  • Median home price (all existing homes): $210,845

11. Richmond, Virginia

Richmond, Virginia
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  • New housing units authorized (per 100,000 residents): 316
  • Total new housing units authorized: 4,128
  • Total value of new housing units authorized: $621.36 million
  • Median home price (all existing homes): $255,333

10. Dallas

Dallas, Texas
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  • New housing units authorized (per 100,000 residents): 383.8
  • Total new housing units authorized: 28,940
  • Total value of new housing units authorized: $6.23 billion
  • Median home price (all existing homes): $259,586

9. Salt Lake City

Salt Lake City, Utah
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  • New housing units authorized (per 100,000 residents): 424.2
  • Total new housing units authorized: 5,186
  • Total value of new housing units authorized: $1.05 billion
  • Median home price (all existing homes): $399,291

8. Charlotte, North Carolina

Home surrounded by greenery in Charlotte,NC.
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  • New housing units authorized (per 100,000 residents): 436.4
  • Total new housing units authorized: 11,213
  • Total value of new housing units authorized: $2.4 billion
  • Median home price (all existing homes): $247,689

7. Orlando, Florida

Quiet neighborhood in Orlando
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  • New housing units authorized (per 100,000 residents): 439.5
  • Total new housing units authorized: 11,308
  • Total value of new housing units authorized: $2.43 billion
  • Median home price (all existing homes): $264,702

6. Phoenix

Phoenix, Arizona
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  • New housing units authorized (per 100,000 residents): 439.9
  • Total new housing units authorized: 21,368
  • Total value of new housing units authorized: $4.79 billion
  • Median home price (all existing homes): $307,114

5. Houston

Houston, Texas
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  • New housing units authorized (per 100,000 residents): 447.2
  • Total new housing units authorized: 31,294
  • Total value of new housing units authorized: $5.76 billion
  • Median home price (all existing homes): $222,271

4. Jacksonville, Florida

Jacksonville, Florida
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  • New housing units authorized (per 100,000 residents): 481.2
  • Total new housing units authorized: 7,385
  • Total value of new housing units authorized: $1.63 billion
  • Median home price (all existing homes): $239,049

3. Nashville, Tennessee

Nashville, Tennessee
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  • New housing units authorized (per 100,000 residents): 566
  • Total new housing units authorized: 10,929
  • Total value of new housing units authorized: $2.08 billion
  • Median home price (all existing homes): $289,094

2. Raleigh, North Carolina

Raleigh, North Carolina
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  • New housing units authorized (per 100,000 residents): 583.5
  • Total new housing units authorized: 7,951
  • Total value of new housing units authorized: $1.61 billion
  • Median home price (all existing homes): $290,266

1. Austin, Texas

Austin, Texas
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  • New housing units authorized (per 100,000 residents): 878.7
  • Total new housing units authorized: 19,052
  • Total value of new housing units authorized: $3.05 billion
  • Median home price (all existing homes): $353,051

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