American Cities With the Biggest Increase in Home Construction in 2022
from ConstructionCoverage.com, July 1, 2022 (excerpts)
…While interest rate hikes are likely to cool demand and slow the pace of home price increases, the Fed’s recent moves cannot solve the housing market’s more fundamental supply challenges. According to researchers at Freddie Mac, the U.S. had a 3.8 million-unit deficit of housing supply in 2020. And with labor shortages and increased material costs during the pandemic, new construction projects may take longer or cost more to complete.
Some locations, however, are investing more in new residential construction than others compared to the same time last year. Massachusetts—one of the most expensive states for housing due to low supply—saw the value of new residential housing permits increase by more than a third from the first months of 2021 to the same period in 2022. Another high-cost state, Hawaii, had an increase of 28.2% over the same span. And at the metro level, major cities in many parts of the U.S. are adding thousands of new units worth hundreds of millions of dollars….
To determine the metros with the biggest increases in home construction, researchers at Construction Coverage analyzed the latest data from the U.S. Census Bureau’s Building Permits Survey. The researchers ranked metro areas according to the value of residential housing permits authorized from January through April of 2022 compared to the same period in 2021.
Here are the U.S. metros with the biggest increase in home construction….
Small Metros #12 Kahului-Wailuku-Lahaina, HI, +41.6%
Midsize Metros #14 Urban Honolulu, HI +25.7%
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