Home Construction to Undergo Expansion Beyond Usual Hotspots
John Burns Research & Consulting (JBREC) Managing Principal Lesley Deutch tackles consultant question “Where will new home construction grow beyond the usual hotspots?” in recent article release.
Despite the near-term uncertainty in today’s markets, the JBREC team takes a long-term view of housing, asking themselves the question of “where are people living now—and where will they choose to live in the future?”
They have foud that over the past year, the United States has issued 1.47 million permits: 994K single-family and 479K multifamily. Dallas-Fort Worth, Houston, Phoenix and Atlanta issued the largest number of total permits, representing nearly 14% of all permit activity in the U.S. However, there are other fast-growing markets worth watching.
According to Deutch’s article, a few of these markets include:
Charlotte, NC, ranks 7th in permit activity over the last 12 months, with 19K single-family and 8K multifamily permits issued. Long known as a strong business relocation market, Charlotte’s strong banking and finance sector continues to attract high-paying jobs. In response to rising housing demand, developers are shifting focus to multifamily projects as infrastructure struggles to keep up.
Raleigh, NC, falls just below Charlotte with a combined 23K permits (16K single-family and 7K multifamily) over the last 12 months. The city is becoming a hub for tech and biotech companies, and its strong university presence helps attract talent to the metro.
Washington, DC, ranks 10th due to the large volume of multifamily permits issued (10K vs. 12K single-family permits). Our outlook for the long-term potential for DC is strong, although the local construction market may slow over the next year.
