The landscape of new-home markets is constantly evolving, with certain regions demonstrating remarkable growth and resilience. In this article, we explore the recent trends and insights gleaned from the top 50 new-home markets in the United States. Additionally, industry experts share their predictions for future developments and emerging opportunities within this dynamic sector.
Texas Dominance and the Rise of Dallas:
Texas continues to assert its dominance in the new-home market, with two powerhouse markets, Dallas-Fort Worth-Arlington and Houston-The Woodlands-Sugar Land, securing the top spots. Dallas, surpassing Houston in 2017, maintains its reign as the No. 1 market, reporting a significant lead of 8,838 closings in 2022. This sustained success can be attributed to factors such as land availability and migration patterns.
Florida's Ascendance:
Florida emerges as a key player in the new-home market, with 10 of its metro areas making the top 50 list. Tampa-St. Petersburg-Clearwater particularly stands out, earning the seventh position. Industry experts highlight Tampa's growth potential, comparing it to the thriving city of Austin. The region's allure lies in its expanding tech industry, financial prominence, and international recognition as one of the World's Greatest Places.
The Florida Advantage:
The Sunshine State's appeal to both builders and buyers can be attributed to three significant factors: ample land availability, affordability, and an exceptional quality of life. Florida's growth extends beyond major metro areas, with smaller regions like Cape Coral/Fort Myers, St. Lucie, and Sarasota witnessing intrastate migration and experiencing substantial development.
New Entrants and Affordability Plays:
The top 50 list welcomed three newcomers: Stockton, CA (No. 46); Palm Bay-Melbourne-Titusville, FL (No. 49); and San Diego-Chula Vista-Carlsbad, CA (No. 50). These markets offer relative affordability, attracting individuals seeking more budget-friendly alternatives. San Diego, often associated with high costs, becomes an appealing option for those migrating from even pricier areas.
Predictions and Future Developments:
Experts foresee Naples, Florida, joining the ranks of the top new-home markets. Anticipated future developments in the eastern area of the county are expected to meet the rising demand and significantly increase new-home closings. Furthermore, the North Port-Sarasota-Bradenton market, ranked No. 20, is projected to experience upward movement due to its robust employment base and the presence of highly successful master-planned communities like Lakewood Ranch and Wellen Park.
Midwest Resilience:
Certain Midwest housing markets, such as Indianapolis, Detroit, and Minneapolis, demonstrate resilience and a strong emphasis on homeownership. Factors contributing to their sales success include relatively lower base prices, enhanced availability of land, and the cultural importance placed on homeownership in these regions.
As we venture further into 2023, the performance of new-home markets across the United States remains an intriguing subject. The continued dominance of Texas and Florida, coupled with the emergence of more affordable alternatives, presents exciting opportunities for builders, buyers, and investors alike. By keeping a keen eye on evolving trends and upcoming developments, stakeholders can position themselves to capitalize on the ever-evolving landscape of the new-home market.