An analysis of new residential construction over the past ten years (2013–22) in the 100 largest US cities by Yardi shows that the Sun Belt region in the US, specifically southern or south-western urban hotspots, experienced notable growth.
Overall, residential real estate construction in the US has been active over the past ten years but has not been robust enough to meet the national housing deficit estimated at 3.8 million units by Freddie Mac, according to the report.
In the past decade, the US issued over 8.3 million building permits for single-family homes and nearly five million for multifamily units. The multifamily sector is progressing towards easing the nation’s housing issues, whereas the single-family market is lagging. This is evidenced by fewer permits for new homes issued in the ten years ended 2022 than in any decade since the 1990s.
Texas, in particular, has the top five best cities for real estate construction, with Houston taking the top spot. Its real estate market is performing well, driven by the demand from an influx of newcomers, a diversifying economy, and a strong job market, with both residential and commercial construction flourishing.
San Antonio ranks second, followed by Austin, Fort Worth and Dallas.
Which city Texan cities performed best in new residential construction?
San Antonio, which benefits from an innovative economy revolving around healthcare, tech and tourism, saw residential construction aimed at responding to the steady inflow of new residents, with 34,000 single-family homes and more than 38,000 multi-family units permitted from 2013 to 2022.
Austin saw significant apartment construction evolution, with almost 99,000 building permits for multi-family units issued over the past decade, with only the likes of New York City and Los Angeles surpassing it. The best year of the decade for multi-family construction was 2022, with more than 15,000 permits registered. About 37,000 single-family homes were also permitted over the past ten years.
Fort Worth saw its population increase by around 25% over the past decade, which propelled residential construction in the area. The city registered 50,000 building permits for single-family homes over the past decade, second only to Houston. Almost 37,000 new apartments were also permitted in Fort Worth during the same time.
Multifamily construction in Dallas is also performing well, with significant growth in the technology and start-up sectors, attracting young, skilled workers.
The report also uses storage space and commercial construction for its index.
[Read more: Moving cities in the US could see renters get a 500% apartment space increase]
