New York City and Dallas need the most new construction
One of the big reasons for rising housing costs is the lack of available homes. Some cities need new stock more than others.
Citing a report from the National Association of Realtors, Realtor.com says that 80 percent of U.S. metros do not have enough homes for buyers. In particular, New York City, Dallas, San Francisco, and Miami could stand to build more than 100,000 new homes each to alleviate the crunch.
The NAR report was based on the amount of new home construction and the number of new jobs added to 171 metros between 2013 to 2015.
“The areas with the most problems are high-growth areas for both jobs and [population],” says Jonathan Smoke, chief economist of realtor.com. “If we do not see the required expansion in new construction, eventually the job growth will slow as the cost of housing will drive people … to markets where [more homes are being built].”