Atlanta and Phoenix Stay Atop New Residential Markets

Nineteen-ninety-nine’s top two areas in terms of sheer volume of new residential construction were Atlanta and Phoenix.
By Daryl Delano, Cahners Economics | March 30, 2000

Recent Trends In New Residential Permits for 1999’s Top 25 Metro Areas

(Preliminary Full-Year Data for 1999)
1999 Rank No. of Units Permitted Year-to-Date % Change Compared to Year Ago
Atlanta GA 60,477 5.2%
Phoenix-Mesa AZ 47,994 0.2
Chicago IL 38,616 14.6
Washington DC 37,866 0.2
Dallas TX 35,950 -9.1
Houston TX 32,573 -23.9
Orlando FL 29,502 14.6
Las Vegas NV 28,800 -10.5
Charlotte NC 24,001 19.6
Tampa-St. Petersburg FL 23,218 22.9
Minneapolis MN 23,010 11.5
Denver CO 22,957 4.1
Raleigh-Durham NC 21,554 14.8
Riverside-San Bernardino CA 20,129 12.3
Seattle WA 19,694 -10.3
Detroit MI 19,370 -7.4
Philadelphia PA 16,799 2.4
Austin TX 16,677 24.3
Kansas City MO-KS 16,445 18.5
San Diego CA 16,234 36.5
Columbus OH 16,047 45.0
Indianapolis IN 15,919 -1.2
New York NY 15,341 13.1
Portland, OR 15,013 -16.5
Los Angeles, CA 13,896 23.9
Source: U.S. Department of Commerce; Professional Builder
Nineteen-ninety-nine’s top two areas in terms of sheer volume of new residential construction were Atlanta and Phoenix - the same as during 1998. However, 1998’s solid number three metro area, Houston, ended up as only the sixth-largest market for new home construction during 1999, as the total number of permits issued during the year fell almost 24%.

Chicago emerged as the third-largest area for new home construction last year, by virtue of a better-than-14% increase in permit volume from the 1998 total. Chicago had been the sixth-largest metro market for new home construction during 1998. Washington and Dallas rounded out the Top 5 for residential activity last year, although neither achieved any forward momentum during the year. Permit volume was flat (but at a very healthy level) between 1998 and 1999 in the Washington, D.C. area, but fell by more than 9% in the formerly hot Dallas market.

Jumping into the Top 10 last year was the Charlotte metropolitan area, on the strength of a nearly 20% increase in residential permit activity. The Tampa-St. Petersburg area also cracked the Top 10 barrier for the first time ever, as permit volume rose almost 23% between 1998 and 1999.

On the strength of solid double-digit gains in residential permit volume, cities that burst into 1999’s Top 25 included San Diego, Columbus, Kansas City, Los Angeles, and New York City. Among the areas falling just short of the Top 25 - but in most cases with solid growth in permit totals - were San Antonio, Nashville, Sacramento, and St. Louis.


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