After a year of staying at home due to the pandemic, more homeowners seek a new sanctuary that could fit their "new normal" lifestyle. However, as the demand arises, the inventories are getting slimmer than they have over the past year.
While the supply has still not met the demand for new houses, constructions are slowly ramping up again, building new communities and custom-built residences in many cities.
According to the U.S. Census Bureau of data, builders applied 14% more permits to construct this year, which means new homes will soon be available in the market after the construction finishes in about seven or eight months.
Realtor.com list down the top cities where brand-new inventories may pop and relieve the increasing demand for housing. Based on the study, most of the new constructions are found on the South and West coast, which all have a growing population due to a strong economy brought by job opportunities and lower cost of living.
John Burns Real Estate Consulting analyst Rich Palacios Jr. said: "Builders are looking to grow wherever they can right now. COVID has ignited demand in markets where there wasn't really a lot of demand before."
Below are the top five cities where builders mostly applied permits to put up single-family homes, condos, apartments, townhouses, and duplexes.
The expansion of big companies like Amazon and Toyota in Dallas is prompting people to relocate to Texas. Besides the job opportunities, future homeowners are also drawn to the city's affordable housing and business-friendly climate. Meanwhile, the lack of red tape on construction permits made it a perfect location for builders to put up their new real estate developments.
New York City
After declaring as the epicenter of COVID-19 last year, builders are now flocking not just the metro area but also the surrounding suburbs. But real estate experts warn that the demand outside the city may not last forever as the coronavirus is now under control, and many businesses are bringing employees back to the office. These workers may opt to rent apartments and condos instead of enduring long commutes outside the metro.
Aside from Phoenix's regular market of retirees, the city is now attracting homeowners looking for spacious yet affordable housing. In nearby Mesa, new housing units are also rising due to a new light-rail system that connects Phoenix and Tempre.
The demand for spacious houses prompted the construction boom in Loudoun and Prince William counties in Northern Virginia. White-collar workers who are no longer required to travel all the way to D.C. are expanding their radius of potential homes.
Competitive schools are the main factor making Atlanta a location of choice for some growing families. Despite the massive demand over the past year, the inventories are not enough to meet the demand; that is why builders are trying to cope up and break even more ground in nearby suburbs in Atlanta.