Damian Eales Chief Executive Officer | realtors.com
America's housing shortage has become a significant issue in the 2024 presidential election, leading to increased home costs. The rise in demand and limited inventory have pushed valuations to their highest levels since the 1950s. A potential solution is new-home construction, with certain cities showing significant growth in this area.
Realtor.com® identified ten metropolitan areas with the most substantial annual growth in new construction. "In these metros, strong price growth and high demand in the existing-home market over the past several years have enticed builders to focus on expanding their operations there to capitalize on profit opportunities and fill the gap created by low existing-home inventory," said Realtor.com senior economist Joel Berner.
The cost difference between new builds and existing homes is not as large as one might expect. According to a July report from the National Association of Realtors®, the median price for an existing home was $422,600, while a new home was priced at $429,800. These prices vary depending on supply and demand in different areas.
Notably, Bend, OR, and Pensacola, FL, have lower median list prices for new-construction homes compared to existing ones. New homes often require less maintenance and may come with builder incentives such as help with closing costs or lower interest rates. In Miami, however, new constructions are priced significantly higher than existing homes.
These growing cities offer more options for buyers who may find themselves priced out of older markets. "Buyers in these markets, who may have been priced out of the existing-home market in recent years, may be able to find a newly built home within their budget," added Berner.
The top cities for new-construction listing growth include:
- Bend, OR: 88.08% growth; median price $656,420
- Miami, FL: 67.72% growth; median price $1.5 million
- Seattle, WA: 65.42% growth; median price $862,444
- Fayetteville, NC: 52.24% growth; median price $349,900
- Colorado Springs, CO: 50.42% growth; median price $563,130
- Port St. Lucie, FL: 48.61% growth; median price $500,000
- Chattanooga,TN: 46.33% growth; median price $439,725
- Pensacola FL: 44.13% growth; median price $341802
- Knoxville TN: 42..07 %growth ;medianprice$457500
-Spartanburg SC :40 .70 %growth ;medianprice$303900
These statistics highlight where potential homeowners might find more affordable options amid America's housing crisis.
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