Both new home sales and new home construction fell sharply in spring, during the onset of the COVID-19 pandemic. However, both have rebounded aggressively, with new home sales back above pre-COVID levels and new home construction nearing recent highs. This bounce-back has been fueled by a combination of low interest rates, increased demand, and a growing preference for low-density housing.
At the same time that the COVID-19 pandemic shifted home buyer demand toward low-density areas and larger homes, the lockdowns delayed peak home buying season creating pent up demand for new homes. This boost in demand for new homes compounds a longer-term trend in the housing market of millennials aging and entering their prime home-buying years. With this confluence of factors, prospective home buyers face a difficult situation—while low interest rates are lowering the cost of a mortgage, the limited supply of existing homes is creating stiff competition for new homes and raising prices.
Here is a summary of the data for Tennessee:
- New housing units authorized (per 100k residents): 322.9
- Total new housing units authorized: 21,863
- Total value of new housing units authorized: $3,993,233,000
- Median home price (all existing homes): $194,891
For reference, here are the statistics for the entire United States:
- New housing units authorized (per 100k residents): 201.2
- Total new housing units authorized: 658,402
- Total value of new housing units authorized: $138,000,000,000
- Median home price (all existing homes): $253,527
For more information, a detailed methodology, and complete results, you can find the original report on Porch’s website: https://porch.com/advice/
