What are the hottest housing markets? We all know that real estate sales are hot! How does the Atlanta new home market stack up? According to the National Association of Home Builders (NAHB) the metropolitan Atlanta new home market ranks No. 3 behind Houston and Dallas for total single family permits pulled from 2011 to 2020. (Our sources at MarketNsight rank Atlanta as the fourth hottest market in the nation based on 2021 permits! We are behind Houston, Dallas and Phoenix.)
NAHB states that home building has staged a slow, modest recovery over the last decade, following the Great Recession, with an accelerated uptick last year during the COVID-19 pandemic. Increased building activity can been seen in both the single-family and multifamily sectors, based on data for permits from the U.S. Census Bureau.
In 2020, builders nationwide applied for 979,360 single-family permits — a 134% increase over 2011 (418,498 permits). For multifamily construction, 491,781 permits were issued in a 139% increase over 2011.
The following table shows the top markets for this growth in each sector.
|Metropolitan Statistical Area||Total Single-family Permits (Units #): 2011-2020|
|Houston-The Woodlands-Sugar Land, TX||363,067|
|Dallas-Fort Worth-Arlington, TX||292,219|
|Atlanta-Sandy Springs-Roswell, GA||196,745|
|Austin-Round Rock, TX||135,181|
|Tampa-St. Petersburg-Clearwater, FL||103,117|
If history continues to repeat itself, these markets will remain the hottest housing markets for the next five years.
Here are some of the many reasons that home sales are so hot for both new homes and resales.
- Economic rebound. The overall economy has seen a rebound far exceeding expectations. Not only has economic output already recovered to pre-pandemic levels, but also growth is forecast to be at its highest rate in decades in 2021 and 2022.
- Working from home. Working from home caused homeowners to evaluate their homes and in many cases this led to dissatisfaction and a move to a new home. Remote work also allowed office workers to move farther away from their workplace. As companies delay the return to work or make remote work a permanent option these numbers could increase.
- Millennials. After decades of sitting on the sidelines, millennials are in the market and buying their first homes.
As always, let us know your thoughts in the comments.