The spring homebuying season in the United States brings a sigh of relief to homebuyers in the form of more inventory. As reported by Zillow, new listings of existing homes increased 21% year-over-year in February and were 20% higher than in January. Listings have been most dominant in the South, especially in states such as Texas and Florida. Many homeowners who had been postponing their decision to sell their house are returning to the market as they have stopped hoping for lower mortgage rates. Total inventory has gone up by 12% since last year, with the highest annual rises recorded as 38.8% in Dallas, 30.7% in Tampa, and 29.5% in Orlando.
Housing Shortage and Probable Solutions
The US housing market continues to be subject to a shortage. As reported by The New York Times on March 27, home prices have climbed more than 60% in the preceding 10 years. You can also take a look at some of the least affordable metros for homebuyers in the US. Simultaneously, a quarter of renters in the United States tend to spend more than half of their income on housing. The consequences of a lack of affordable housing inventory are noticeable. Those who drive for 90 minutes or more to work have left expensive places for smaller cities such as Spokane or fast-growing metropolitan places including Dallas and Phoenix.
In a national housing shortage of four million units as predicted by Freddie Mac, low-cost rentals and entry-level starter homes are the prominent victims. This has put additional pressure on first-time homebuyers who have long been pushed out of the market amidst high mortgage rates and surging home prices. Previously, we have covered the best states for first-time homebuyers. States are altering zoning rules to utilize places designated for single-family homes for duplexes and triplexes. Another probable solution is to reduce lot sizes to accommodate more cottages instead of a large house. However, new laws as solutions have been referred to as a step too far for the current US real estate market.
Top Homebuilders in the US
Some of the largest homebuilders in the US tend to offer diverse housing options to cater to the different demands of American homebuyers. These builders include Tri Pointe Homes, Inc. (NYSE:TPH), Lennar Corporation (NYSE:LEN), and M.D.C. Holdings, Inc. (NYSE:MDC). Let’s take a look at what these firms have been up to.
Tri Pointe Homes, Inc. (NYSE:TPH) is one of the largest American homebuilders and constructs premium homes and communities in 10 states. On April 9, the company reported that it is opening new divisions in Orlando, Florida, and the Coastal Carolinas. Expansion in Orlando and the Coastal Carolinas will enable the homebuilder to grow its business in the top 25 US homebuilding markets. Simultaneously, South Carolina and Florida are rapidly growing states where Tri Pointe Homes, Inc. (NYSE:TPH) can fulfill the demand for premium entry-level and move-up housing.
Lennar Corporation (NYSE:LEN) is a leading builder of quality homes for all generations in the US. The company constructs affordable, move-up, and active adult homes primarily under the Lennar brand name. On April 2, Lennar Corporation (NYSE:LEN) reported that the company has initiated sales at Settlers Brook, its first community in the city of Buffalo. Homebuyers who wish to seek a small-town charm combined with recreation can settle in the community. Wild March Golf Club, Highway 55, Pulaski Lake, and Buffalo Lake can be easily accessed by the residents. Pricing of homes at Settlers Brook starts in the $300,000s.
M.D.C. Holdings, Inc. (NYSE:MDC) operates Richmond American Homes which is one of the largest homebuilders in the country. The homebuilder has operations in multiple states including Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New Mexico, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington. On April 10, Richmond American Homes of Florida, LP, a subsidiary of, M.D.C. Holdings, Inc. (NYSE:MDC) announced the grand opening of its new community in Apollo Beach. The community ‘Waterset’ offers new single and two-story homes priced from the $400,000s. Amenities include a community pool, clubhouse, sports courts, and parks. Waterset is also located close to Tampa, Sarasota, and St. Petersburg and will be debuting on Saturday, April 20.
Now that we have developed an understanding of the existing housing inventory scenario in the United States, let’s move to the 20 metros with the highest gains in active home inventory in the country.
20 Metros with the Highest Gains in Active Home Inventory in the US
20 Metros with the Highest Gains in Active Home Inventory in the US
Our Methodology:
In order to compile a list of the 20 metros with the highest gains in active home inventory in the US, we utilized data from Zillow. The Metro Explorer on Zillow gives the year-over-year change in active inventory by metro. The most recent data is available from February. Hence, the 20 US metros with the highest gains in active home inventory in the country have been ranked in ascending order of their year-over-year inventory gains.
20 Metros with the Highest Gains in Active Home Inventory in the US
20. Poughkeepsie
Year-Over-Year Gain in Active Home Inventory: 33.2%
Poughkeepsie is a city situated in New York. As of February, the year-over-year rise in the city’s active home inventory was recorded at 33.2%. Hence, Poughkeepsie ranks among the 20 metros with the highest gains in active home inventory in the country.
19. Wilmington
Year-Over-Year Gain in Active Home Inventory: 33.9%
Wilmington has one of the highest active home inventory gains in the United States. While the active home inventory in Wilmington increased by 1.6% month-over-month in February, the metro recorded a year-over-year rise of 33.9%.
18. Cape Coral
Year-Over-Year Gain in Active Home Inventory: 34.1%
Cape Coral is positioned in Lee County, Florida. The year-over-year gain in active home inventory in the metro is 34.1%, as of February. Active inventory in Cape Coral has also increased since January.
17. Deltona
Year-Over-Year Gain in Active Home Inventory: 34.3%
Deltona is another city in Florida where active home inventory has increased. As of February, Deltona’s active inventory has gone up by 34.3% thereby ranking the metro as one of the metros with the most inventory gains.
16. Crestview
Year-Over-Year Gain in Active Home Inventory: 36.9%
The active home inventory in Crestview has risen by 12% since the pandemic. Additionally, the active inventory climbed 36.9% year-over-year in February. Therefore, Crestview is another US metro with a high active inventory gain.
15. Fort Wayne
Year-Over-Year Gain in Active Home Inventory: 37.9%
Fort Wayne is situated in northeastern Indiana. Active home inventory in the metro has increased by 37.9% since 2023. This ranks the metro 15th on our list.
14. Dallas
Year-Over-Year Gain in Active Home Inventory: 38.8%
The 20 metros with the highest inventory gains in the US rank the Texas-based city of Dallas. As of February, the active home inventory in the metro increased by 38.8% year-over-year. Inventory has also gone up by 4.7% since January.
13. Gulfport
Year-Over-Year Gain in Active Home Inventory: 39.4%
Gulfport is a populous city in Mississippi. The city ranks among the metros with the highest active inventory gains. The active home inventory in the city has experienced a rise of 39.4% since 2023.
12. Fayetteville
Year-Over-Year Gain in Active Home Inventory: 41.1%
Fayetteville is based in Cumberland County, North Carolina. With a 41.1% year-over-year gain in active home inventory, Fayetteville ranks as another metro where active inventory has gone up.
11. Amarillo
Year-Over-Year Gain in Active Home Inventory: 41.2%
Amarillo is located in Texas. Between 2023 and 2024, the active home inventory in Amarillo climbed 41.2% thereby ranking the metro among the 20 metros with the highest gains in active inventory in the United States.
10. Lubbock
Year-Over-Year Gain in Active Home Inventory: 46.5%
Texas hosts the city of Lubbock. The year-over-year rise in the metro’s active home inventory was reported to be 46.5%, as of February. Hence, Lubbock ranks as another US metro where active inventory has increased.
9. McAllen
Year-Over-Year Gain in Active Home Inventory: 47.6%
McAllen is a part of Texas. As of February, the active home inventory in McAllen has gone up by 47.6% year-over-year.
8. Fargo
Year-Over-Year Gain in Active Home Inventory: 56.6%
The city of Fargo is situated in Cass County, North Dakota. With a year-over-year rise of 56.6% in active inventory, Fargo ranks among the metros with the highest gains in active home inventory in the United States.
7. Savannah
Year-Over-Year Gain in Active Home Inventory: 59.7%
Savannah is situated in Georgia and ranks among the 20 US metros that recorded the highest active home inventory gains. According to Zillow, the increase in Savannah’s active inventory was 59.7%, as of February.
6. Myrtle Beach
Year-Over-Year Gain in Active Home Inventory: 65.6%
The resort city of Myrtle Beach is located in Horry County, South Carolina. As of February, the active home inventory in the resort city increased by 65.6% year-over-year. This inventory has also risen by 6.7% since January.
