20 Large US Cities with the Fewest Homes for Sale
In This Article:
In this article, we will be analyzing the housing market in the US while covering the 20 large US cities with the fewest homes for sale. If you wish to skip our detailed analysis, you can move directly to the 5 Large US Cities with the Fewest Homes for Sale.
The US Housing Market: An Analysis
The US housing market experienced a persistent crisis during 2023. While the market was short of houses, demand remained unfulfilled. Rising mortgage rates limited options for those Americans who were interested in buying a house. Simultaneously, existing homeowners felt reluctant to sell their houses since they had to pay a higher mortgage on a new home.
On January 11, Forbes reported that the housing market is expected to normalize in 2024. One sign supporting this prediction is the stabilization of mortgage rates. It has also been forecasted that the Federal Reserve might not engage in further rate hiking against inflation. The new single-family building permits also went up in November 2023. However, problems related to high home prices will continue due to a limited supply of houses. Cities where you can buy a home for under 300k have been previously covered. An increase in the housing stock combined with declining interest rates has the potential to bring the industry back to normal.
The US housing industry has depicted other bright prospects as well. On January 17, CNBC reported that homebuilder sentiment climbed up in January and reached its highest since September 2023. This positive development has been a consequence of the declining mortgage rates. These rates dropped from almost 8% in mid-October to the range of 6% in December. Builders believe that lower mortgage rates have improved affordability by convincing those buyers who had given up on buying a house, to return to the market. You can also take a look at cities where home prices are falling. Builder confidence rose the most in the Northeast of the US. South and West also saw slight increases. At the same time, homebuilders remain concerned with the building material cost and availability.
Home Builders Penetrating the US
Amidst current housing market dynamics, American home builders continue to fulfill the diverse housing needs of the population. Some of the major house-building companies include Lennar Corporation (NYSE:LEN), LGI Homes, Inc. (NASDAQ:LGIH), and KB Home (NYSE:KBH). Let’s take a look at what these firms have been up to.
Lennar Corporation (NYSE:LEN) is an American home construction company that constructs affordable, move-up, and active adult homes primarily under the Lennar brand name. It also engages in the development of high-quality multifamily rental properties. On January 9, Lennar Corporation (NYSE:LEN) reported that it will be introducing its first community in Smithfield, North Carolina. This community is situated in the suburbs of Raleigh and is expected to open in early 2024. Residents can easily commute to downtown Raleigh while staying in these affordable homes. A walking trail, a playground area, and a dog park can also be accessed. The prices of these new homes start in the high $200,000s.