Press release from Lattice Publishing:
Between rising mortgage rates and the rapid run-up in home values, the residential real estate market has cooled down slightly. But while this leveling-out in demand may have helped to slow down price growth, it can’t solve another fundamental challenge in the U.S. housing market: a major shortage of housing supply.
The lack of supply has been exacerbated by significant underinvestment in new housing since the Great Recession: the collapse of the housing market in the mid-2000s and ensuing recession sent authorizations to historic lows. The number of new residential units authorized has recovered slowly over the last decade, but as of June 2024, new authorizations declined nearly 25% after peaking in January 2022.
To make matters worse, the construction industry struggled to keep up during the pandemic: worker shortages and hindered supply chains made it harder and more expensive to obtain building materials. As a result, more single-family units saw monthslong delaysin the time it takes to start and complete construction when compared to years past.
Ranking Methodology:
Although supply is a challenge across the U.S., some locations are progressing faster than others in authorizing new construction. Researchers ranked locations according to the number of new housing units authorized per 1,000 existing homes in 2023.
Results:
Last year, the Asheville metro area authorized 17.9 new housing units per 1,000 existing homes—placing it 22nd out of 96 midsize U.S. metros.
Here is a link to the complete results of the analysis, with data on 370 U.S. metros and all 50 states.
The analysis was conducted by Construction Coverage, a website that provides construction software and insurance reviews.
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