Over the past year, through the end of July, the pace of sales for new homes that are single-family, increased by 33% in the South. At the same time, there were declines of 44% for the northeast, 3% across the West and 2% for the Midwest, the Commerce Department announced.
The South also by far had the largest share in the market. Sales in July of new single-family homes were at an annualized rate of 253,000 for the South, eclipsing only 18.000 for the Northeast, 52,000 for the Midwest, and more than 89,000 for the West.
It is not a shocker that the largest current market is in the south for new homes. The region has about one third of the total population in the U.S. and includes thriving states like Texas.
The economy in general is better in the south, said an economist in the industry.
It is important to know, added the economist that markets like Boston and New York have experienced booms in the construction of apartments but that kind of data does not translate into the report by the government for single-family homes.
Special attention is paid to by economists in the single-family home market due to this sector being materials and labor intensive, providing a nice boost to the economy.
The South has also benefitted from a steady increase in people in part due to immigrants as well as households that relocated from other sections of the country.
There is also another advantage, as there remains more area to build thus offering more options to buyers.
In the majority of large cities located in the south, there is a great deal of room for expansion and there are not any issues with land shortages such as in NYC or San Francisco.
However, sales in the South of new homes as well as in other regions of the U.S. remain well below their peak rates.