While raw new home construction data shows that Houston issued the most construction permits in 2011, a recent analysis by Trulia looked at the number of permits issued per 1,000 existing housing units in 100 metropolitan areas. Using this approach, they were able to determine the top 10 cities with the most construction activity relative to their size.
The list of cities, along with their average number of construction permits per 1,000 housing units, includes:
1. El Paso, Texas (15.36)
2. Austin, Texas (14.49)
3. Raleigh, N.C. (13.66)
4. Houston (13.55)
5. Charleston, S.C. (12.80)
6. Dallas (11.26)
7. Little Rock, Ark. (10.53)
8. Baton Rouge, La. (9.51)
9. Washington, D.C. (9.44)
10. Columbia, S.C. (8.74)
Trulia analysts argue that this list provides a more definitive look at the breadth of new home construction across the nation, as larger metro areas would be expected to issue more permits.
The top 10 cities with the most construction permits issued include:
1. Houston (31,271)
2. Dallas (18,686)
3. Washington, D.C. (16,501)
4. New York (13,973)
5. Austin, Texas (10,239)
6. Los Angeles (9,895)
7. Phoenix (9,081)
8. Seattle (8,664)
9. Atlanta (8,634)
10. San Antonio (7,127)
From looking at both lists, Trulia points to two factors affecting the extensive growth of new home construction in these areas: long-term employment growth and smaller home price declines. Many of these areas have seen above-average employment growth, and they have managed to avoid the steep drop in home prices seen in the areas hit hardest by the housing crisis.
To read the rest of the Trulia analysis, click here.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable