15 Cities Building the Most Homes

Editor’s Note: This story originally appeared on Inspection Support Network.

Rising real estate values and increasing rents have stretched budgets for homebuyers and renters over the last two years. The median home sales price in the U.S. jumped by nearly $100,000 from the first quarter of 2020 to the first quarter of 2022 amid low interest rates and a stronger-than-expected pandemic economy.

Rents were flat for much of 2020 with coronavirus-related renter protections and rental assistance programs in place but accelerated in 2021 and the first half of 2022. The median rent in the U.S. has increased by more than 15% over the past year and recently passed $2,000 per month for the first time.

Since the beginning of 2022, the U.S. Federal Reserve has raised interest rates in an effort to combat inflation throughout the economy. Between rising mortgage rates and the rapid run-up in home values, the residential real estate market has shown recent signs of cooling. But while a leveling out in demand could slow the pace of price increases, these measures cannot solve another fundamental challenge in the U.S. housing market: a major shortage of housing supply.

Researchers at federal mortgage backer Freddie Mac have estimated that the U.S. has a housing supply shortage of 3.8 million units.

This shortage has been fueled in large part by a decline in single-family home construction, particularly for starter homes, that dates back to the 1980s. And with millennials now comprising the largest generational segment of the homebuying market, a lack of affordable entry-level homes has driven competition for housing and kept larger numbers of young adults renting, contributing to price increases for buyers and renters alike.

Although supply is a challenge across the U.S., some locations are moving faster than others in authorizing new construction.

To determine the U.S. metro areas building the most homes, researchers at Inspection Support Network analyzed the latest data from the U.S. Census Bureau and Zillow. Here are the large metros (population 1 million or more) building the most homes.

15. Minneapolis-St. Paul-Bloomington, MN-WI

• New housing units authorized per 1,000 existing homes (2021): 17.9
• New housing units authorized per 1,000 existing homes (2019): 15.7
• Total new housing units authorized (2021): 26,077
• Total new housing units authorized (2019): 22,414
• Percentage change in housing units authorized (2019-2021): +16.3%
• Median home price: $374,074

14. Richmond, VA

• New housing units authorized per 1,000 existing homes (2021): 18.1
• New housing units authorized per 1,000 existing homes (2019): 16.1
• Total new housing units authorized (2021): 9,547
• Total new housing units authorized (2019): 8,340
• Percentage change in housing units authorized (2019-2021): +14.5%
• Median home price: $320,654

13. Seattle-Tacoma-Bellevue, WA

• New housing units authorized per 1,000 existing homes (2021): 19.0
• New housing units authorized per 1,000 existing homes (2019): 17.0
• Total new housing units authorized (2021): 30,743
• Total new housing units authorized (2019): 26,599
• Percentage change in housing units authorized (2019-2021): +15.6%
• Median home price: $791,933

12. San Antonio-New Braunfels, TX

• New housing units authorized per 1,000 existing homes (2021): 24.6
• New housing units authorized per 1,000 existing homes (2019): 18.0
• Total new housing units authorized (2021): 22,264
• Total new housing units authorized (2019): 15,895
• Percentage change in housing units authorized (2019-2021): +40.1%
• Median home price: $329,532

11. Denver-Aurora-Lakewood, CO

• New housing units authorized per 1,000 existing homes (2021): 25.9
• New housing units authorized per 1,000 existing homes (2019): 16.7
• Total new housing units authorized (2021): 30,006
• Total new housing units authorized (2019): 19,308
• Percentage change in housing units authorized (2019-2021): +55.4%
• Median home price: $639,316

10. Phoenix-Mesa-Chandler, AZ

• New housing units authorized per 1,000 existing homes (2021): 26.0
• New housing units authorized per 1,000 existing homes (2019): 19.0
• Total new housing units authorized (2021): 50,581
• Total new housing units authorized (2019): 35,873
• Percentage change in housing units authorized (2019-2021): +41.0%
• Median home price: $466,170

9. Houston-The Woodlands-Sugar Land, TX

• New housing units authorized per 1,000 existing homes (2021): 26.2
• New housing units authorized per 1,000 existing homes (2019): 25.0
• Total new housing units authorized (2021): 69,263
• Total new housing units authorized (2019): 63,672
• Percentage change in housing units authorized (2019-2021): +8.8%
• Median home price: $299,998

8. Salt Lake City, UT

• New housing units authorized per 1,000 existing homes (2021): 27.3
• New housing units authorized per 1,000 existing homes (2019): 25.9
• Total new housing units authorized (2021): 11,642
• Total new housing units authorized (2019): 10,680
• Percentage change in housing units authorized (2019-2021): +9.0%
• Median home price: $602,765

7. Dallas-Fort Worth-Arlington, TX

• New housing units authorized per 1,000 existing homes (2021): 27.9
• New housing units authorized per 1,000 existing homes (2019): 23.1
• Total new housing units authorized (2021): 78,705
• Total new housing units authorized (2019): 62,708
• Percentage change in housing units authorized (2019-2021): +25.5%
• Median home price: $381,089

6. Charlotte-Concord-Gastonia, NC-SC

• New housing units authorized per 1,000 existing homes (2021): 28.4
• New housing units authorized per 1,000 existing homes (2019): 24.1
• Total new housing units authorized (2021): 30,126
• Total new housing units authorized (2019): 24,637
• Percentage change in housing units authorized (2019-2021): +22.3%
• Median home price: $372,300

5. Orlando-Kissimmee-Sanford, FL

• New housing units authorized per 1,000 existing homes (2021): 29.0
• New housing units authorized per 1,000 existing homes (2019): 24.2
• Total new housing units authorized (2021): 30,618
• Total new housing units authorized (2019): 24,470
• Percentage change in housing units authorized (2019-2021): +25.1%
• Median home price: $376,474

4. Jacksonville, FL

• New housing units authorized per 1,000 existing homes (2021): 34.6
• New housing units authorized per 1,000 existing homes (2019): 23.1
• Total new housing units authorized (2021): 22,738
• Total new housing units authorized (2019): 14,687
• Percentage change in housing units authorized (2019-2021): +54.8%
• Median home price: $355,286

3. Raleigh-Cary, NC

• New housing units authorized per 1,000 existing homes (2021): 39.5
• New housing units authorized per v existing homes (2019): 25.5
• Total new housing units authorized (2021): 21,649
• Total new housing units authorized (2019): 13,320
• Percentage change in housing units authorized (2019-2021): +62.5%
• Median home price: $445,219

2. Nashville-Davidson–Murfreesboro–Franklin, TN

• New housing units authorized per 1,000 existing homes (2021): 40.8
• New housing units authorized per 1,000 existing homes (2019): 30.1
• Total new housing units authorized (2021): 32,191
• Total new housing units authorized (2019): 22,702
• Percentage change in housing units authorized (2019-2021): +41.8%
• Median home price: $433,158

1. Austin-Round Rock-Georgetown, TX

• New housing units authorized per 1,000 existing homes (2021): 59.4
• New housing units authorized per 1,000 existing homes (2019): 39.7
• Total new housing units authorized (2021): 50,907
• Total new housing units authorized (2019): 32,037
• Percentage change in housing units authorized (2019-2021): +58.9%
• Median home price: $594,441

Methodology

To determine the metros building the most homes, researchers at Inspection Support Network analyzed the latest data from the U.S. Census Bureau’s Building Permit Survey and Zillow’s Zillow Home Value Index (ZHVI). The researchers ranked metro areas according to the number of new housing units authorized per 1,000 existing homes in 2021.

In the event of a tie, the metro with higher total new housing units authorized in 2021 was ranked higher. Researchers also calculated the number of new housing units authorized per 1,000 existing homes in 2019, the total new housing units authorized in 2019, the percentage change in housing units authorized from 2019 to 2021, and the current median home price.

Only metropolitan areas with available data and with at least 100,000 people were included in the analysis.

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