Dallas Area Building Homes At Seventh-Fastest Growth Rate In U.S.
The Dallas area is building homes at the seventh-fastest growth rate in the U.S. among large metro areas, according to a new report from the Inspection Support Network.
To determine the metros building the most homes, researchers at Inspection Support Network analyzed the latest data from the U.S. Census Bureau and Zillow. The researchers ranked metro areas according to the number of new housing units authorized per 1,000 existing homes in 2021.
The analysis found that for every 1,000 existing homes in the Dallas metro area in 2021, 27.9 new housing units were authorized, compared to 12.5 new units nationally, compared to 23.1 new housing units authorized per 1,000 existing homes in 2019.
The Austin area is building homes at the highest rate, having authorized 59.4 new housing units for every 1,000 existing homes in 2021, and 39.7 new housing units for every 1,000 existing homes in 2019, followed by the Nashville, Tennessee area, the Raleigh, North Carolina area, the Jacksonville, Florida area, and the Orlando area.
Researchers at federal mortgage backer Freddie Mac have estimated that the U.S. has a housing supply shortage of 3.8 million units.
This shortage has been fueled in large part by a decline in single family home construction, particularly for starter homes, dating back to the 1980s. And with millennials now comprising the largest generational segment of the homebuying market, a lack of affordable entry-level homes has driven competition for housing and kept larger numbers of young adults renting, contributing to price increases for buyers and renters alike, per Inspection Support Network.
Despite recent demand, the construction industry has struggled to keep up during the pandemic.
COVID-related disruptions have produced worker shortages and hindered supply chains, making it harder and more expensive to obtain building materials. As a result, more single-family units are seeing monthslong delays in the time it takes to start and complete construction when compared to years past.
Although supply is a challenge across the U.S., some locations are moving faster than others in authorizing new construction. Fast-growing states in the Mountain West, like Utah, Idaho, and Colorado, along with Sun Belt destinations like Texas and Florida, lead the U.S. in the rate of new housing authorizations relative to existing homes. At the local level, major cities in these fast-growing states are also among the leading metros for new home construction.
For more information, visit Inspection Support Network’s website here.
