Many parts of the United States face serious housing shortages. One study last year by the nonprofit research group Up For Growth estimated that the country needs about 3.8 million homes simply to meet current residential housing demand. This shortage has caused home prices and rents to skyrocket as supply outpaces demand.
Prospective home buyers and renters suffer from this shortage, but the shortage is good for homeowners who see their home equity increase and landlords who are able to raise rents. This is one of the reasons – along with keeping traffic and density low – why homeowners and city councils often oppose the construction of multi-family units that would help to reduce and stabilize housing costs. For example, intense opposition by homeowners in White Plains, New York, last year compelled the city’s council to reject a proposal to replace an office building with a 360-unit apartment complex. (Of course, the situation can be starkly different in other places, here are America’s 25 ghost towns.)
New residential buildings include the construction of both single-family and multi-family homes, the latter of which includes apartment buildings and condominiums. The construction of larger single-family homes – which houses fewer people on more square footage – is much higher than the construction of multi-family units, which are vital in more densely-populated areas suffering from housing shortages and unaffordability. So where have contractors been busiest with new residential construction?
To determine the metro areas with the most new housing construction, 24/7 Wall St. reviewed data on building permits by year from the U.S. Census Bureau’s Building Permits Survey. Metropolitan areas were ranked based on the total value of new privately-owned housing units authorized by building permits in 2022. Supplemental data on the number of new residential building permits authorized used to calculate the average value of permits in each metropolitan area and historical data used to calculate annual change also came from the BPS.
New residential construction in 2022 occurred mostly in metropolitan areas in three of the nation’s largest states – Florida, Texas, and California – with Texas leading in the total value of authorized residential units. Twelve of the 25 metro areas with the newest housing construction last year are located in these three states. (Find out how much home you can buy for $200k in each state.)
Developers in the Texas metropolitan areas of Dallas, Austin, Houston, and San Antonio were issued a total of more than 220,000 residential permits in 2022 for a total worth of nearly $44 billion. Despite a large influx of new residents and tremendous demand for homes in the Austin metropolitan area, permits declined by 16% compared to 2021. The total number of permits declined from 2021 in several metros on the list, including a nearly 42% drop in Nashville.
The average value of a new residential unit in these 25 metro areas ranges from about $168,000 in the New York-Newark-New Jersey metro area to about $280,000 in Miami-Fort Lauderdale-Pompano Beach.
Here is where the most U.S. new residential construction is happening.
Source: dell640 / iStock via Getty Images
25. San Francisco-Oakland-Berkeley, CA
> Total value of new residential building permits in 2022: $3.0 billion (-20.8% from 2021)
> No. new residential building permits in 2022: 11,048 (-18.8% from 2021)
> Avg. value of a new residential building: $271,917 (-2.5% from 2021)
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Source: Sean Pavone / iStock via Getty Images
24. Indianapolis-Carmel-Anderson, IN
> Total value of new residential building permits in 2022: $3.6 billion (-5.7% from 2021)
> No. new residential building permits in 2022: 13,794 (+2.5% from 2021)
> Avg. value of a new residential building: $259,670 (-8.1% from 2021)
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Source: MattGush / iStock via Getty Images
23. Riverside-San Bernardino-Ontario, CA
> Total value of new residential building permits in 2022: $3.9 billion (+4.5% from 2021)
> No. new residential building permits in 2022: 16,320 (+4.6% from 2021)
> Avg. value of a new residential building: $239,921 (-0.1% from 2021)
Source: DenisTangneyJr / E+ via Getty Images
22. Boston-Cambridge-Newton, MA-NH
> Total value of new residential building permits in 2022: $4.0 billion (+7.5% from 2021)
> No. new residential building permits in 2022: 14,593 (-12.1% from 2021)
> Avg. value of a new residential building: $272,307 (+22.3% from 2021)
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Source: chrisp0 / E+ via Getty Images
21. Chicago-Naperville-Elgin, IL-IN-WI
> Total value of new residential building permits in 2022: $4.1 billion (-0.3% from 2021)
> No. new residential building permits in 2022: 17,360 (-6.2% from 2021)
> Avg. value of a new residential building: $237,867 (+6.3% from 2021)
Source: Sean Pavone / iStock via Getty Images
20. North Port-Sarasota-Bradenton, FL
> Total value of new residential building permits in 2022: $4.2 billion (+6.8% from 2021)
> No. new residential building permits in 2022: 15,808 (-0.7% from 2021)
> Avg. value of a new residential building: $264,758 (+7.6% from 2021)
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Source: f11photo / iStock via Getty Images
19. San Antonio-New Braunfels, TX
> Total value of new residential building permits in 2022: $4.2 billion (-5.3% from 2021)
> No. new residential building permits in 2022: 24,006 (+7.8% from 2021)
> Avg. value of a new residential building: $174,560 (-12.1% from 2021)
Source: Mark Howard / iStock via Getty Images
18. Raleigh-Cary, NC
> Total value of new residential building permits in 2022: $4.4 billion (-2.1% from 2021)
> No. new residential building permits in 2022: 21,551 (-0.5% from 2021)
> Avg. value of a new residential building: $205,196 (-1.7% from 2021)
Source: SeanPavonePhoto / iStock via Getty Images
17. Jacksonville, FL
> Total value of new residential building permits in 2022: $4.6 billion (+7.0% from 2021)
> No. new residential building permits in 2022: 23,131 (+1.7% from 2021)
> Avg. value of a new residential building: $200,758 (+5.2% from 2021)
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Source: Kruck20 / iStock via Getty Images
16. Nashville-Davidson-Murfreesboro-Franklin, TN
> Total value of new residential building permits in 2022: $5.1 billion (-20.7% from 2021)
> No. new residential building permits in 2022: 18,711 (-41.9% from 2021)
> Avg. value of a new residential building: $273,206 (+36.4% from 2021)
Source: Kruck20 / iStock via Getty Images
15. Denver-Aurora-Lakewood, CO
> Total value of new residential building permits in 2022: $5.2 billion (-16.8% from 2021)
> No. new residential building permits in 2022: 23,472 (-21.8% from 2021)
> Avg. value of a new residential building: $220,992 (+6.4% from 2021)
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Source: Art Wager / E+ via Getty Images
14. Miami-Fort Lauderdale-Pompano Beach, FL
> Total value of new residential building permits in 2022: $5.6 billion (-16.9% from 2021)
> No. new residential building permits in 2022: 19,813 (-21.7% from 2021)
> Avg. value of a new residential building: $280,219 (+6.1% from 2021)
Source: apichart / iStock via Getty Images
13. Seattle-Tacoma-Bellevue, WA
> Total value of new residential building permits in 2022: $5.7 billion (-10.9% from 2021)
> No. new residential building permits in 2022: 26,820 (-12.8% from 2021)
> Avg. value of a new residential building: $214,298 (+2.1% from 2021)
Source: Amy Sparwasser / iStock via Getty Images
12. Washington-Arlington-Alexandria, DC-VA-MD-WV
> Total value of new residential building permits in 2022: $6.0 billion (+12.1% from 2021)
> No. new residential building permits in 2022: 32,296 (+17.8% from 2021)
> Avg. value of a new residential building: $185,244 (-4.9% from 2021)
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Source: JenniferPhotographyImaging / E+ via Getty Images
11. Minneapolis-St. Paul-Bloomington, MN-WI
> Total value of new residential building permits in 2022: $6.0 billion (-1.9% from 2021)
> No. new residential building permits in 2022: 24,937 (-4.4% from 2021)
> Avg. value of a new residential building: $242,024 (+2.5% from 2021)
Source: SeanPavonePhoto / iStock via Getty Images
10. Orlando-Kissimmee-Sanford, FL
> Total value of new residential building permits in 2022: $6.2 billion (-1.8% from 2021)
> No. new residential building permits in 2022: 28,890 (-5.6% from 2021)
> Avg. value of a new residential building: $214,731 (+4.0% from 2021)
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Source: SeanPavonePhoto / iStock via Getty Images
9. Tampa-St. Petersburg-Clearwater, FL
> Total value of new residential building permits in 2022: $6.2 billion (+7.0% from 2021)
> No. new residential building permits in 2022: 29,960 (+20.7% from 2021)
> Avg. value of a new residential building: $207,184 (-11.3% from 2021)
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Source: Kruck20 / iStock via Getty Images
8. Charlotte-Concord-Gastonia, NC-SC
> Total value of new residential building permits in 2022: $6.3 billion (-0.9% from 2021)
> No. new residential building permits in 2022: 27,168 (-9.8% from 2021)
> Avg. value of a new residential building: $230,945 (+9.9% from 2021)
Source: Ron and Patty Thomas / E+ via Getty Images
7. Los Angeles-Long Beach-Anaheim, CA
> Total value of new residential building permits in 2022: $7.1 billion (+2.4% from 2021)
> No. new residential building permits in 2022: 32,593 (+4.6% from 2021)
> Avg. value of a new residential building: $218,893 (-2.1% from 2021)
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Source: dszc / E+ via Getty Images
6. Austin-Round Rock-Georgetown, TX
> Total value of new residential building permits in 2022: $8.7 billion (-4.6% from 2021)
> No. new residential building permits in 2022: 42,942 (-15.6% from 2021)
> Avg. value of a new residential building: $202,164 (+13.1% from 2021)
Source: Sean Pavone / iStock via Getty Images
5. Atlanta-Sandy Springs-Alpharetta, GA
> Total value of new residential building permits in 2022: $9.5 billion (+9.4% from 2021)
> No. new residential building permits in 2022: 47,157 (+19.5% from 2021)
> Avg. value of a new residential building: $202,431 (-8.4% from 2021)
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Source: TomasSereda / iStock via Getty Images
4. New York-Newark-Jersey City, NY-NJ-PA
> Total value of new residential building permits in 2022: $9.9 billion (+14.1% from 2021)
> No. new residential building permits in 2022: 58,991 (+4.1% from 2021)
> Avg. value of a new residential building: $168,124 (+9.6% from 2021)
Source: photoquest7 / iStock via Getty Images
3. Phoenix-Mesa-Chandler, AZ
> Total value of new residential building permits in 2022: $10.8 billion (-7.1% from 2021)
> No. new residential building permits in 2022: 47,369 (-6.4% from 2021)
> Avg. value of a new residential building: $228,526 (-0.8% from 2021)
Source: Sean Pavone / iStock via Getty Images
2. Houston-The Woodlands-Sugar Land, TX
> Total value of new residential building permits in 2022: $15.0 billion (+9.7% from 2021)
> No. new residential building permits in 2022: 75,786 (+9.4% from 2021)
> Avg. value of a new residential building: $198,074 (+0.3% from 2021)
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Source: dibrova / iStock via Getty Images
1. Dallas-Fort Worth-Arlington, TX
> Total value of new residential building permits in 2022: $16.1 billion (-3.4% from 2021)
> No. new residential building permits in 2022: 77,281 (-1.8% from 2021)
> Avg. value of a new residential building: $208,188 (-1.6% from 2021)
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