Suburbs Lead the Way for New-Home Construction

Those looking for new homes should set their sights to the suburbs. A recent report from real estate marketing platform Realtor.com shows that most new-home construction activity is taking place outside of the city. 

Most new homes for sale are located in suburban areas

The share of new homes for sale in the suburbs reaches 79.8%. Meanwhile, that figure is just 10.9% in urban areas. In rural areas, new homes make up just 1.2% of homes for sale, and in towns, that share reaches 8%.

Suburbs also have the highest share of existing homes for sale. The share of existing homes for sale in the suburbs reaches 55.7%, while in urban areas, the share is at 29.7%. In towns, it's 10.7%, and in rural areas, the share was the smallest at 3.9%.

Which metros have the highest shares of new homes for sale?

While the nationwide share of new homes is highest in the suburbs, some urban areas have relatively high rates of new homes. For instance, the urban share of new-construction listings in the New York City-Newark-Jersey City metro reaches 69.6%, and in Miami-Fort Lauderdale-West Palm Beach, it reaches 69.5%. The San Francisco metro followed, with the urban share of new-construction listings at 68.9%.