With housing inventories being low around most of the country, many markets are looking to new home construction to help with this shortfall. However, we are also at a time when home buyer activity has decreased substantially in large part due to rising mortgage interest rates. In addition, out-of-control inflation has also made it more difficult for Americans to save money for a home purchase. Lastly, many believe that a recession is looming and thus do not tend to spend much money at all. All these factors combined with high material costs, supply chain challenges, and a labor shortage are also impacting home builders. So which states are seeing the most new home construction? We discuss below.
Top 5 states for new home construction
|Rank||State||New Homes Per 1,000 Residents|
|1.||UT||11.7 new homes per 1,000 residents|
|2.||ID||11.3 new homes per 1,000 residents|
|3.||FL||9.80 new homes per 1,000 residents|
|4.||SC||9.76 new homes per 1,000 residents|
|5.||CO||9.73 new homes per 1,000 residents|
As shown above, The Sunshine State came in ranked at 3rd overall in the country for the rate of new home construction. While this is a positive sign for addressing the home inventory shortage in the state, it is important to remember that Florida was the top state for inbound migration last year. Therefore, the pace of new construction will need to remain high in order to meet the ever growing demand throughout the state.
Are you looking to buy or sell real estate in the South Florida market? We can help. Contact one of our friendly team members at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your mobile device as well.