The US is a massive Housing Bubble in early 2022. Home prices have never been higher while inventory has never been lower. But luckily home builders across the US Real Estate Market are coming to the rescue: 1.5 Million Homes are currently under construction in the US Housing Market, the highest level in nearly 50 years according to the US Census Bureau.
But it’s really 10 CITIES in particular where home construction is at its highest. Home buyers and real estate investors in these cities will love the fact that so many homes and apartments are currently under construction.
US Census Permits Data: https://www.census.gov/construction/bps/msaannual.html
Realtor.com Inventory Data: https://www.realtor.com/research/data/
10. Denver, CO
US Census Data shows a 50% increase in building permits from 2020 to 2021 in the Denver Housing Market, one of the highest in America. Over 6,000 single-family homes were permitted in the second half of 2021, a potential 300% increase over the existing level of inventory according to Realtor.com.
9. Dallas, TX
The Dallas-Fort Worth metro builds more homes and apartments than any other place in America. There were over 72k permits pulled in 2021 by home and apartment developers, a record high. They sure love to build across the Texas Real Estate market.
8. Charlotte, NC
Another Housing Market where they like to build is Charlotte! Nearly 30k permits were pulled in 2021, higher than the levels in the mid-2000s at the height of the previous Housing Bubble. That’s a big warning sign for homebuyers in Charlotte: Housing Crash Coming?
7. Salt Lake City, UT
Salt Lake City, alongside neighboring metros like Ogden and Provo, is building a record number of new housing inventory. Over the last 6 months of 2021 there were 2,100 permits pulled for single-family homes, while there were 600 homes active on the market. A 355% potential increase.
6. Fayetteville, AR
Fayetteville, and Northwest Arkansas more generally, has the potential to be the next Austin, TX over the next decade. But in the short-term there could be some problems. Nearly 80% of all homes permitted in Fayetteville are single-family houses and there has been big increase in recent years.
5. Nashville, TN
Nashville is the rare Housing Market that is building significantly more than in the mid-2000s. In 2021 home builders in Nashville permitted 31k new housing units. The previous high in the 2006 Bubble was 16k. The last Housing Crash didn’t hit Nashville that hard. But perhaps this one will.
4. Sarasota, FL
A hot destination for retirees and second home buyers, Sarasota is once again a hot area for new development. Nearly 16k housing units were permitted in 2021, with a potential 427% increase over the prevailing active inventory levels according to Realtor.com.
3. Austin, TX
Arguably the biggest Housing Bubble in US HISTORY. And it could be one of the biggest Housing Crashes in to the future. Austin’s Real Estate Market is about to get hit with deluge of new inventory like it’s never seen before in its history.
2. Huntsville, AL
Huntsville is a Housing Market I like over the long-term, say the next 5-10 years. But in the short run there could be some major softness coming due to how aggressive home builders have become. Huntsville is now building more than it did in the mid-2000s (Bubble WARNING).
1. Raleigh, NC
Raleigh (including areas like Cary) has also been a major home building market. But things have really ramped into high gear over the last year. In the last 6 months home builders have permitted 6,600 single-family homes while active inventory levels are a mere 1,100. This means that Raleigh could be facing a 600% increase in inventory if all of the homes under construction hit the market.
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