Home Building Is Half an Industry
A John Burns Real Estate Consulting report shows that of the top 10 U.S. metro markets, only Houston and Dallas built as many or more single-family homes than in 2005.
In all, the top 10 markets built 54% fewer homes compared with 14 years ago.
We get asked all the time when the US will return to 1 million or more single-family housing units, and our quick, somewhat flippant answer is “when the builders can make money selling 1 million homes.” Cost increases at every step of the way have pushed home prices to a point where home builders find it very difficult to build homes priced $250,000 and below in places where most people want to live, writes Erik Franks, senior vice president.
In addition to data about single-family permits, the report breaks down average new home sales price per metro market.