New homes: Which U.S. cities are adding most to housing supply?
Published 7:54 pm Monday, June 10, 2024
New homes: Which U.S. cities are adding most to housing supply?
The Consumer Price Index clocks inflation between spring 2019 and spring 2024 at 22.9%. But Zillow home sale data demonstrates a particularly swift hike in home prices during this time, with the average home sale increasing by 49.4% in the same window. Housing costs are often the largest budget item for Americans and this could make home ownership feel out of reach for many. But adding new housing can help relieve price pressures in undersupplied metro areas.
With this in mind, SmartAsset ranked metro areas according to the most recent number of new construction sales and median sales prices.
Key Findings
- Texas metros dominate the top 10 places with the most new construction. Houston and Dallas top the list in first and second position with 1,751 and 1,574 new construction sales respectively for March 2024. San Antonio also ranked fifth with 777 new construction sales, and Austin in seventh with 750.
- New construction homes sold at an average of $1.74 million in San Jose, CA. Across the 41 new homes that sold, the price per square foot averaged $970.27. Heber, UT had the second-highest new construction sales prices at $1.38 million, and a price per square foot of $725.36. San Francisco ($1.34 million) and Los Angeles ($1.19 million) were the only other two metros where new construction sales averaged over one million dollars.
- In 11 metro areas, new construction homes sell for less than average home value. This includes Crestview, FL (-$70,267 for new construction sales); Bend, OR (-$24,433); Lake Havasu City, AZ (-$21,255); Hilton Head Island, SC (-$19,210); Daphne, AL (-$16,108); Provo, UT (-$12,010); Austin, TX (-$9,879); Reno, NV (-$8,303); Homosassa Springs, FL (-$8,000); Panama City, FL (-$5,200); and Fort Collins, CO (-$1,715).
- In New York City, new construction homes sold for an average of $929,500. The price per square foot for new construction homes is the eighth-highest studywide at $452.91. For non-new construction homes, the average sale price was $564,167. Despite New York City’s population size and high home prices, the metro ranks 29th overall for the amount of new construction, with 283 new homes sold in March 2024.
SmartAsset
Top 10 places with the most new construction home sales
Metro areas are ranked based on the number of new construction home sales in March 2024.
- Houston, TX
- Number of new construction sales: 1751
- New construction median sale price: $347,990
- New construction median sale price per square foot: $173.82
- Median sale price for all homes: $318,104
- Difference between new construction and all home sale prices: $29,886
- Dallas, TX
- Number of new construction sales: 1574
- New construction median sale price: $414,950
- New construction median sale price per square foot: $195.03
- Median sale price for all homes: $379,117
- Difference between new construction and all home sale prices: $35,833
- Atlanta, GA
- Number of new construction sales: 1123
- New construction median sale price: $439,900
- New construction median sale price per square foot: $191.33
- Median sale price for all homes: $350,000
- Difference between new construction and all home sale prices: $89,900
- Phoenix, AZ
- Number of new construction sales: 844
- New construction median sale price: $447,097
- New construction median sale price per square foot: $228.98
- Median sale price for all homes: $441,667
- Difference between new construction and all home sale prices: $5,430
- San Antonio, TX
- Number of new construction sales: 777
- New construction median sale price: $310,446
- New construction median sale price per square foot: $169.40
- Median sale price for all homes: $297,833
- Difference between new construction and all home sale prices: $12,613
- Charlotte, NC
- Number of new construction sales: 771
- New construction median sale price: $406,500
- New construction median sale price per square foot: $211.57
- Median sale price for all homes: $361,333
- Difference between new construction and all home sale prices: $45,167
- Austin, TX
- Number of new construction sales: 750
- New construction median sale price: $434,900
- New construction median sale price per square foot: $209.10
- Median sale price for all homes: $444,779
- Difference between new construction and all home sale prices: -$9,879
- Nashville, TN
- Number of new construction sales: 705
- New construction median sale price: $485,000
- New construction median sale price per square foot: $231.46
- Median sale price for all homes: $418,500
- Difference between new construction and all home sale prices: $66,500
- Tampa, FL
- Number of new construction sales: 689
- New construction median sale price: $398,985
- New construction median sale price per square foot: $191.17
- Median sale price for all homes: $360,000
- Difference between new construction and all home sale prices: $38,985
- Raleigh, NC
- Number of new construction sales: 652
- New construction median sale price: $429,950
- New construction median sale price per square foot: $202.50
- Median sale price for all homes: $408,667
- Difference between new construction and all home sale prices: $21,283
Top 10 places with the highest sales prices for new construction homes
Metro areas are ranked based on the highest median sale price for new construction homes in March 2024.
- San Jose, CA
- Number of new construction sales: 41
- New construction median sale price: $1,735,000
- New construction median sale price per square foot: $970.27
- Median sale price for all homes: $1,435,500
- Difference between new construction and all home sale prices: $299,500
- Heber, UT
- Number of new construction sales: 51
- New construction median sale price: $1,375,000
- New construction median sale price per square foot: $725.36
- Median sale price for all homes: $1,052,500
- Difference between new construction and all home sale prices: $322,500
- San Francisco, CA
- Number of new construction sales: 103
- New construction median sale price: $1,335,000
- New construction median sale price per square foot: $766.97
- Median sale price for all homes: $1,051,667
- Difference between new construction and all home sale prices: $283,333
- Los Angeles, CA
- Number of new construction sales: 231
- New construction median sale price: $1,185,000
- New construction median sale price per square foot: $644.37
- Median sale price for all homes: $900,167
- Difference between new construction and all home sale prices: $284,833
- Miami, FL
- Number of new construction sales: 184
- New construction median sale price: $950,000
- New construction median sale price per square foot: $430.00
- Median sale price for all homes: $460,833
- Difference between new construction and all home sale prices: $489,167
- New York, NY
- Number of new construction sales: 283
- New construction median sale price: $929,500
- New construction median sale price per square foot: $452.91
- Median sale price for all homes: $564,167
- Difference between new construction and all home sale prices: $365,333
- Boston, MA
- Number of new construction sales: 290
- New construction median sale price: $926,997.50
- New construction median sale price per square foot: $495.07
- Median sale price for all homes: $624,167
- Difference between new construction and all home sale prices: $302,830.50
- San Diego, CA
- Number of new construction sales: 40
- New construction median sale price: $904,005
- New construction median sale price per square foot: $478.71
- Median sale price for all homes: $855,000
- Difference between new construction and all home sale prices: $49,005
- Seattle, WA
- Number of new construction sales: 380
- New construction median sale price: $874,250
- New construction median sale price per square foot: $490.24
- Median sale price for all homes: $658,767
- Difference between new construction and all home sale prices: $215,483
- Sacramento, CA
- Number of new construction sales: 134
- New construction median sale price: $675,750
- New construction median sale price per square foot: $315.22
- Median sale price for all homes: $538,917
- Difference between new construction and all home sale prices: $136,833
Data and methodology
A total of 153 metro areas were ranked based on the number of new construction sales in March 2024 according to Zillow data. Data in this study includes the following for all homes (single family homes and condos):
- New construction sales count
- New construction median sales price
- Median sale price per square foot
- Median sale price for all homes (April 2024)
This story was produced by SmartAsset and reviewed and distributed by Stacker Media.
