May 11, 2012 5:32 am
As with all real estate, construction is also local, however. While construction is gearing up in some markets, it remains dormant in others. According to Atlantic Cities, understanding construction patterns is critical for understanding the future of cities, for two reasons.
First, construction activity is a bet on future growth, as developers will only build in areas where they believe future demand for housing is strong. Construction is a clear signal of builder confidence in an area. Second, construction has a long-term impact on urban patterns, affecting a city’s density and sprawl.
What do construction patterns say about the future of cities in America? Atlantic Cities cites recent Census Bureau data on construction permits issued by localities in 2011, including whether those permits were for single-family homes or units in multi-family buildings.
The metro areas with the most construction permits were:
- Houston, Texas - 31,271
- Dallas, Texas – 18,686
- Washington, DC – 18,686
- New York, N.Y. – 13,973
- Austin, Texas – 10,239
- Los Angeles, Calif. - 9,895
- Phoenix, Ariz. – 9,081
- Seattle, Wash. – 8,664
- Atlanta, Ga. - 8,634
- San Antonio, Texas – 7,127
The rate of construction is highest in metros within Texas and the Carolinas and lowest in the Northeast and Midwest. The rate of construction is higher across Texas, the mid-South and Mountain states, but lower in New England, the Great Lakes, South Florida and most of coastal California.
Source: The Atlantic Cities – the atlanticcities.com
Published with permission from RISMedia.