SEATTLE, April 30, 2021 / PRNewswire / – (NASDAQ: RDFN) – More than a quarter (25.7%) of single-family homes for sale in America during the first quarter were new builds, according to a new report from Redfin (www.redfin). com), the technology-driven real estate agent. This is an increase of 20.4% in the previous year and represents the highest proportion ever recorded.

New buildings have become increasingly important over the past decade, but there has been a remarkable acceleration during the coronavirus pandemic. According to Redfin Lead Economist, there are two main reasons Taylor Marr: an increase in residential construction and a decrease in the number of Americans putting their homes up for sale.

“Home construction has become more attractive and profitable during the pandemic due to record-low mortgage rates and the ardent demand for home buyers,” Marr said. “At the same time, many homeowners have chosen to keep and refinance or remodel their existing homes rather than selling them so that new builds can take up more of the market.”

US housing starts – the number of new housing projects – rose almost 20% in March from the previous month, to their highest level since 2006, a sign that builders are becoming more optimistic despite a lack of wood and increased construction costs. In the meantime, the listings of the existing homes declined.

Many pandemic homebuyers have also turned to the new home market because bidding wars are fierce and new homes have historically attracted less competition. But the U.S. housing shortage has grown so bad that some newly built homes now have waiting lists that are 90 buyers deep, Redfin’s Salt Lake City market manager said. Ryan Aycock. Some builders even terminate contracts with buyers who do not accept price increases.

“New homes have usually been a good option for buyers who don’t want to deal with bidding wars, as builders don’t typically set deadlines for bids. Buyers also like the fact that they can often buy a new home for what it’s actually listed for than having to bid well above the asking price in order to win, “said the Redfin Houston real estate agent Melanie Miller. “However, new build inventories are very low and prices for many new and prefabricated houses are rising now because timber prices have risen. I had a buyer who settled for a price with a contractor. The builder called us on next day and said they can’t do that price anymore because their suppliers just increased prices. “

El Paso, Texas and Boise, ID Have the highest proportion of new build homes
in the El Paso, Texas53.2% of the single-family homes for sale in the first quarter were newly built – the largest proportion of the 82 US metropolitan areas, according to Redfins analysis. Metro must have had at least 750,000 residents and at least 50 newly built single-family home sales in the first quarter to be included in Redfin’s analysis. The other metros were in the top 10 Boise, ID (46.7%), Houston (35.5%), Raleigh, NC (34.5%), Baton Rouge, LA (34.1%), Albany, NY (33.7%), Nashville, TN (31.9%), Charlotte, NC (31.6%), Oklahoma City, OK (30.8%) and Knoxville, TN (29.6%).

in the Fresno, CA.Only 2.4% of single-family homes for sale in the first quarter were newly built – the smallest proportion of the 82 metros in Redfin’s analysis. It followed Oakland, CA. (2.9%), Bakersfield, CA. (3.2%), Riverside, CA. (3.4%), Pittsburgh (3.8%), Anaheim, CA. (4.2%), San Diego (4.4%), Las Vegas (4.5%), Camden, NJ (4.7%) and Newark, NJ (5%).

California Metros partially fill the lower part of the list because they tend to have less empty land and less space for residential development, Marr said. Broken down by region, the West had the lowest proportion of newly built houses as a proportion of all single-family homes available for sale, at just 8.4%. It was followed by the Northeast (11.4%), the Midwest (15.4%) and the South (25.8%).

Certain major metros are excluded from Redfin’s analysis because the methodology filters out metros that sold fewer than 50 newly built single-family homes in the first quarter. San Francisco and Philadelphia belong to the metros excluded for this reason.

Looking ahead: the building permits are the highest Elgin, IL and Tacoma, WA
Single-family home building permits, or government-issued permits that allow home builders to start building single-family homes, rose 25.7% year over year in the first quarter.

in the Elgin, ILSingle-family permits rose 68.3% – the biggest jump in metros, according to Redfins analysis for which US census permit data was available. It followed Tacoma, WA (58.9%), Bridgeport, CT (57.9%), Minneapolis (57.5%) and Albany, NY (57%).

Only five of the metros in Redfin’s analysis saw a decline in single-family permits. The biggest drop was in Newark, NJ, where permits were down 22% year over year in the first quarter. Next came Allentown, PA (-19.6%), Virginia Beach, VA (-10.5%), San Diego (-9.2%) and Camden, NJ (-5.6%).

For the full report including the subway-level data charts, please visit: https://www.redfin.com/news/new-construction-Q1-2021

About Redfin
Redfin (www.redfin.com) is a technology-based real estate agent, iBuyer, lender, title insurer, and home renovation company. We sell houses for more money and we charge half the fee. We also run the country’s # 1 real estate agent site. Our home buying customers see homes first on on-demand tours, and our loan and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our home renovation team fix their home to sell it for the best price. Since the start in 2006, we have almost saved customers $ 1 billion in commissions. We serve more than 95 markets in the US and Canada and employ over 4,100 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. Visit the Redfin Data Center to learn more about real estate market trends and download data. To be added to Redfin ‘s press release distribution list, send an email [email protected]. Click here to view the Redfin Press Center.

SOURCE Redfin

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