Prospective homebuyers across the U.S. are facing a critical shortage of available housing, but the scarcity is worse in some parts of the country, according to new research by Bank of America. They conducted their analysis by looking at real-time migration flows, based on internal data and housing stock.
This analysis found that four cities are at the epicenter of this crisis, with three located in Texas – San Antonio, Dallas, and Houston. Finishing off the list is Orlando, FL.
The hot quadrant includes cities that continue to have fast inward population growth, and already have relatively stretched housing stocks, according to the study. San Antonio, Dallas, Orlando, and Houston all fall under this categorization.
“This is largely because these cities are experiencing high population growth, a “booming” labor market, and low housing inventory. As of June 2023, Dallas and Orlando both recorded payroll growth that is substantially higher than the national average and continue to attract new residents looking for work, according to the reports,” stated Joe Bornstein, Rock Springs Realty Broker/Owner.
But that influx of new residents is a double-edged sword, with housing stocks relative to population in these cities tumbling below the national average. As a result, we’re also seeing home price growth that is far higher than the typical level seen over the past two years. When compared with the same month in 2019, home prices in Orlando were up 58%. Dallas saw prices increase by about 49%, noted Bornstein.
There are signs that these cities are working to address the lack of available homes. All four cities saw higher-than-average permits issued per capita during the first five months of 2023, and new multifamily completions are set to hit a record high in 2024 as COVID-19-related disruptions dissipate.
While the good news is that cities with lower housing availability are already seeing higher construction trends, the question is whether supply will continue to keep up if the inward migration trends are sustained in these growing parts of the country. If not, there will continue to be a strong housing need.
“If you’re looking to sell or buy anywhere in the Central Florida area, you need the knowledge and experience of the seasoned team at Rock Springs Realty to guide you through all the complexities of the real estate market. You need a team you can trust and who will always look out for your best interest,” stated Bornstein.
Rock Springs Realty will take the time to walk you through each step of the process, explain the contract and disclosures, and give you a full understanding of the closing process. They are skilled negotiators who can get you the best deal possible.
Rock Springs Realty is a full-service real estate brokerage offering residential, investment, and commercial services in the Central Florida market since 2008.
They make it easier for you to find your new home or sell your current one. Voted one of the top real estate offices in Apopka for nine years in a row validates why they’re the professionals you can count on for making your dreams a reality.
Rock Springs Realty provides the highest level of service and commitment to their customers. They deliver exceptional results for property owners, investors, and residents alike, and have emerged as a clear market leader for the greater Apopka area. They operate with a rigorous commitment to staying in front of rapidly changing market conditions. Their broad range of expertise earns superior results across market cycles and asset classes.
Joe Bornstein and his team provide the highest level of service and foster a culture of efficiency, open communication, and a complete dedication to their clients’ needs. The experienced teams of professionals at Rock Springs Realty include Realtors Joanne Montchal, Dawna Hosier, Christine Nejame-Evans, Kelli Crosby and Kyle Moro. The combined experience of this team represents decades of successful accomplishment of their clients’ real estate transactions.
Always delivering results, you can visit them at www.RockSpringsRealty.com or call toll free (877) 333-2811 to find out how they can assist you with your specific real estate needs in this rapidly changing market. “It’s all about results”, stated Bornstein.
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