In 2022, home construction slowed dramatically across the country as mortgage rates rose, alienating potential buyers. Single-family housing starts fell nearly 19% in September from a year earlier, and construction permits fell 17%, according to the Census Bureau.
A building permit is considered a measure of future construction. In October 2022, home sales fell for the ninth straight month.
U.S. homebuilders did very well at the beginning of the coronavirus pandemic. Interest rates dropped to record lows, demand surged as homebound people wanted more rooms, and house prices rose by 40% in two years. Home builders couldn’t keep up.
However, that scenario was reversed as interest rates rose and markets retreated sharply.
Three of the top 20 metropolitan areas that made this list are in Arkansas, and the remaining five are in West Virginia. Both states are among the poorest states in the country. According to the Arkansas Economic Development Commission, Arkansas’ home prices rank her third lowest in the nation. 16 of the 20 metropolitan areas are in the South or Midwest.
The metropolitan area that tops the list is Bremerton, Washington, an hour’s ferry ride from Seattle and home to Naval Station Kitsap, the second largest naval base on the West Coast. Home prices are flat across the Seattle area compared to his year ago, and in Kitsap County, he said the median home price was up about 1% in November at $505,471.
Nashville MLS is the slowest to build, based on a decline in building permits approved from January and February 2022 to September and October 2022, analyzing data from the Census Bureau’s building permit survey. We ranked the top 20 metropolitan areas.
The analysis used two months of data to account for month-to-month variability, and of the 384 metros for which data were available, 236 metros with 100 or more permits in January and February Limited. A metropolitan area often includes an identified city, nearby municipalities, and suburbs.
Homebuilders have warned that high interest rates could keep buyers anxious through 2023.