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Residential Construction Getty Images 1126022466 Photovs
Residential Construction Getty Images 1126022466 Photovs
Residential Construction Getty Images 1126022466 Photovs
Residential Construction Getty Images 1126022466 Photovs
Residential Construction Getty Images 1126022466 Photovs

Sunbelt States Still Kings & Queens of the Housing Market According to Latest Data

Nov. 18, 2021
Check out which MSAs are on the move in the homebuilding arena.

When the story is written about the 2021 construction market, the single-family construction market will be lauded as the strongest niche of them all. When measured on a value of new construction basis, year-over-year growth rate of new single-family construction was up +30.4% through September to $412.7 billion. The fact that single-family construction accounted for 26.2% of all construction dollars spent during this period gives you a pretty good idea of why the housing market is such a critical element of the entire U.S. economy.

With demographic trends pointing to a healthy parade of Millennials and other new homebuyers in the market for their first home and low mortgage rates, the National Association of Home Builders (NAHB) expects the single-family housing market to have another year of double-digit growth in 2022. It’s forecasting 1.1 million housing starts in 2022, a +15.8% increase. You can expect homebuilding activity to continue on its historical trend of being ultra-concentrated in the states with the highest population growth, which are in the Sunbelt. Through Sept. 2021, 10 states accounted for an estimated 62% of all single-family building permits — Texas, Florida, North Carolina, California, Georgia, Arizona, South Carolina, Tennessee, Colorado and Utah.

Drill down into the data, and you will also find that a relative handful of Metropolitan Statistical Areas (MSAs) account for a giant share of all housing activity. For example, the 50 MSAs in the chart on page 2 currently account for 31% of all building permits year-to-date. Some perennial housing all-stars made the Top 10 on the list — Houston, Dallas, Phoenix, Atlanta, Austin, TX, Tampa, FL, Charlotte, NC, Orlando and Jacksonville, FL, and Nashville, TN.

Click here to download the latest housing data for all 300-plus MSAs