Key facts
- Homebuilders are increasing construction efforts, particularly in the Southern U.S.
- Realtor.com identified the top 10 metropolitan areas for buyers seeking newly built homes.
- The Carolinas region dominates the ranking, with six metros appearing on the list.
- Builders in the South are offering new homes at prices competitive with existing homes.
- Florida has been a significant source of migration to the Carolinas.
The U.S. housing market is experiencing a shortage of available homes, with many homeowners reluctant to sell due to low mortgage rates. However, homebuilders are increasing construction efforts, particularly in the Southern United States, according to a report from Realtor.com. The company has identified the top 10 metropolitan areas where prospective buyers are most likely to find newly built homes at competitive prices.
Joel Berner, a senior economist at Realtor.com, highlighted that new construction is crucial for expanding housing supply, but this opportunity is not evenly distributed. He noted that builders in the South are constructing homes at prices that can rival or even undercut existing homes. The Carolinas, a region that has attracted significant migration due to its affordability and lower cost of living, dominate the ranking with six metro areas featured. Florida, in particular, has been a major source of inbound migration to the Carolinas, with nearly 40,000 people moving from Florida to North Carolina in 2023 alone.
Realtor.com's top 10 list includes Columbia, SC (25.5% new construction share, -3.0% premium, 45 days on market), Durham-Chapel Hill, NC (33% share, 8.7% premium, 68 days on market), and Madison, WI (30.8% share, 12.5% premium, 70 days on market).