These Are the Top 5 Markets for New Home Sales

The best-selling metros are benefiting from robust labor markets, relatively high incomes, foreign buyer demand, and an elevated quality of life

By Meyers Research

Homebuilders in San Jose, San Francisco, Los Angeles, and Miami have the highest average sales rates[1] by project per month of the top new home markets across the country. The Manager of Housing Economics at Meyers Research, Ali Wolf, explains “the best-selling metros are benefiting from robust labor markets, relatively high incomes, foreign buyer demand, and an elevated quality of life. These markets are burdened by a dearth of inventory, so when homes hit the market, consumers are eager to purchase.”

top 5 new home sales markets

[1] The data is based on the actively selling new home projects in Zonda, Meyers Research’s iPad application that tracks top economic and housing data across the country. The pace is calculated by looking at the average sales rate per month since all actively selling communities opened in their respective MSA.

Builders in Phoenix and Las Vegas, two quintessential boom/bust markets, are selling an average of 3.0 homes per month. Phoenix and Las Vegas are still plagued with some distress from the Great Recession, but more buyers are regaining equity and seeing their foreclosures drop of their credit score. Home prices remain 11 percent and 25 percent below the previous peak for Phoenix and Las Vegas, respectively.

Markets like Tampa, Houston, and Atlanta are selling around the national average of 2.0 sales per month. Tampa is another market not entirely recovered from the last downturn in terms of foreclosures and home prices. Lower oil prices caused some consumers to pause in the Houston market over the past couple of years. The Meyers Research Texas expert, Scott David, is seeing sales starting to rebound in Houston now that oil crossed back above $50 per barrel. In Atlanta, builders are struggling to provide attainable products in the right locations due to high land costs (and tight supply), which is holding back their overall sales pace.

Meyers Research is a premier consulting practice and the housing industry’s leading provider of rich data for residential real estate development and new home construction.
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www.meyersresearchllc.com.

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