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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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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