We all know the pandemic messed up a lot of things within our housing market. In my personal opinion separate from bargainhousenetwork.com that the pandemic messed everyone up. People not only couldn’t afford building but also that people got removed from there home. The pandemic housing boom was primarily driven by cities like Boise, Austin, and Phoenix. However, with the possibility of a strong year for homebuilding in 2024 due to falling mortgage rates, new “edge” markets are experiencing a surge in activity. Hopefully this will be abele to rectify the problems caused in 2024.
This shift can be attributed to three key factors that influence builders’ decisions on where to construct houses. Firstly, the availability of land plays a crucial role. Secondly, the economic factors used to evaluate new deals have changed. Lastly, the stock market’s signals regarding the level of aggressiveness builders should adopt have also shifted. These factors combined are redirecting builders away from the major growth markets of the 2010s and towards areas that have not yet been extensively developed or overpriced.
Winston-Salem and Asheville, located in North Carolina, as well as Myrtle Beach in South Carolina, have emerged as prominent metro areas experiencing significant growth in single-family housing permits during the initial 11 months of 2023, when compared to the corresponding period in 2021. Conversely, Austin and Phoenix witnessed a decline of 30% in permits, while Boise experienced a 21% decrease. These three cities, which had experienced a surge in housing demand during the pandemic, fared worse than the national decline of 19%.