Cities With Most New Construction

Cities Most New Construction – New construction is often a sign that things are looking up and with new building permits up in February construction seems to be recovering along with other parts of the economy. So where are things picking up the most in regards to new construction?

Cities With Most New Construction

Cities Most New Construction

Cities Most New Construction

Well as usual I have not been the one to go out to each and every city and find out the details. A recent Forbes slideshow looked at 20 cities with the most new construction based on data from McGraw-Hill Construction. They used building data for the nation’s Metropolitan Statistical Areas (MSAs) to get their stats.

Here are the stats for those cities:

1. New York City, NY

  • M.S.A.: New York-Northern New Jersey-Long Island, NY-NJ-PA
  • 2011 Construction Starts: $17.2 billion
  • 2010 Construction Starts: $22 billion
  • 2009 Construction Starts: $17.3 billion

2. Dallas, TX

  • M.S.A.: Dallas-Fort Worth-Arlington, TX
  • 2011 Construction Starts: $9.5 billion
  • 2010 Construction Starts: $9.7 billion
  • 2009 Construction Starts: $9.1 billion

3. Houston, TX

  • M.S.A.: Houston-Baytown-Sugar Land, TX
  • 2011 Construction Starts: $8.8 billion
  • 2010 Construction Starts: $8.1 billion
  • 2009 Construction Starts: $8.5 billion

4. Washington, D.C.

  • M.S.A.: Washington-Arlington-Alexandria, DC-VA-MD-WV
  • 2011 Construction Starts: $8.1 billion
  • 2010 Construction Starts: $7.9 billion
  • 2009 Construction Starts: $8 billion

5. Chicago, IL

  • M.S.A.: Chicago-Naperville-Joliet, IL-IN-WI
  • 2011 Construction Starts: $6 billion
  • 2010 Construction Starts: $5.9 billion
  • 2009 Construction Starts: $6 billion

6. Boston, MA

  • M.S.A.: Boston-Cambridge-Quincy, MA-NH
  • 2011 Construction Starts: $5.9 billion
  • 2010 Construction Starts: $5.1 billion
  • 2009 Construction Starts: $3.8 billion

7. Los Angeles, CA

  • M.S.A.: Los Angeles-Long Beach-Santa Ana, CA
  • 2011 Construction Starts: $5.8 billion
  • 2010 Construction Starts: $7.2 billion
  • 2009 Construction Starts: $5.8 billion

8. Phoenix, AZ

  • M.S.A.: Phoenix-Mesa-Scottsdale, AZ
  • 2011 Construction Starts: $5.3 billion
  • 2010 Construction Starts: $3.7 billion
  • 2009 Construction Starts: $4.6 billion

9. Seattle, WA

  • M.S.A.: Seattle-Tacoma-Bellevue, WA
  • 2011 Construction Starts: $5.2 billion
  • 2010 Construction Starts: $4 billion
  • 2009 Construction Starts: $3.9 billion

10. Atlanta, GA

  • M.S.A.: Atlanta-Sandy Springs-Marietta, GA
  • 2011 Construction Starts: $4.9 billion
  • 2010 Construction Starts: $3.9 billion
  • 2009 Construction Starts: $3.8 billion

11. San Francisco, CA

  • M.S.A.: San Francisco-Oakland-Fremont, CA
  • 2011 Construction Starts: $4.5 billion
  • 2010 Construction Starts: $4.8 billion
  • 2009 Construction Starts: $4.3 billion

12. Philadelphia, PA

  • M.S.A.: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
  • 2011 Construction Starts: $3.9 billion
  • 2010 Construction Starts: $3.8 billion
  • 2009 Construction Starts: $3.6 billion

13. Denver, CO

  • M.S.A.: Denver-Aurora, CO
  • 2011 Construction Starts: $3.8 billion
  • 2010 Construction Starts: $2.7 billion
  • 2009 Construction Starts: $2.1 billion

14. Miami, FL (tie)

  • M.S.A.: Miami-Fort Lauderdale-Miami Beach, FL
  • 2011 Construction Starts: $3.4 billion
  • 2010 Construction Starts: $3 billion
  • 2009 Construction Starts: $3.4 billion

14. San Diego, CA (tie)

  • M.S.A.: San Diego-Carlsbad-San Marcos, CA
  • 2011 Construction Starts: $3.4 billion
  • 2010 Construction Starts: $3.2 billion
  • 2009 Construction Starts: $2.8 billion

15. Minneapolis, MN (tie)

  • M.S.A.: Minneapolis-St. Paul-Bloomington, MN-WI
  • 2011 Construction Starts: $3.3 billion
  • 2010 Construction Starts: $2.4 billion
  • 2009 Construction Starts: $2.1 billion

15. San Antonio, TX (tie)

  • M.S.A.: San Antonio, TX
  • 2011 Construction Starts: $3.3 billion
  • 2010 Construction Starts: $2.8 billion
  • 2009 Construction Starts: $3.8 billion

16. Salt Lake City, UT (tie)

  • M.S.A.: Salt Lake City, UT
  • 2011 Construction Starts: $3 billion
  • 2010 Construction Starts: $1.6 billion
  • 2009 Construction Starts: $1.3 billion

16. New Orleans, LA (tie)

  • M.S.A.: New Orleans-Metairie-Kenner, LA
  • 2011 Construction Starts: $3 billion
  • 2010 Construction Starts: $1.9 billion
  • 2009 Construction Starts: $1.9 billion

17. Portland, OR

  • M.S.A.: Portland-Vancouver-Beaverton, OR-WA
  • 2011 Construction Starts: $2.8 billion
  • 2010 Construction Starts: $1.8 billion
  • 2009 Construction Starts: $2 billion

Info Source: Forbes.

Cities With Most New Construction

No surprise that New York is at the top here and some of the others are obvious too. It is usually the way that these power house centres will rise with the economy and often fall hardest with it too.

Do you live in any of these cities, have you noticed a lot of new construction?

Related: February New Homes Permits

Thanks for reading.

Bank of America Pilot Program

Bank of America Pilot Program – An idea that was in place during the Great Depression is being trial run by Bank of America. The pilot program offers a possible option for people facing foreclosure to stay in their homes.

Bank of America Pilot Program

Bank of America Pilot Program

Bank of America Pilot Program

The premise is simple. People on the verge of foreclosure are offered the option to give their home to the bank and then stay on as renters. In return for this exchange all of their mortgage debt is forgiven and obviously the bank get to avoid going through the entire foreclosure process, which can often take around 2 years and cost close to $80k.

According to an article on RepublicanAmerican:

“Bank of America says it’s targeting homeowners who are at “considerable risk” of foreclosure; have high loan balances relative to their home’s value; have exhausted all loan modification programs, and have been delinquent on their mortgage payments for more than 60 days.”

The pilot program called “Mortgage to Lease” is currently enrolling trial members from Arizona, Nevada and New York. Less than 1000 will currently be enrolled. They are allowing people who have exhausted other loan modification options.

After a period of time the homes could potentially be sold onto investors. I assume the rental agreement would stand for some time afterwards but I don’t know the full details of that!

On one hand I can see some potential benefits for both parties in such a program. Obviously a person / family would not be made to immediately move out and the stress of foreclosure would not be an issue. The local area and community would also not be seeing the effects and drag a foreclosure can bring on a local housing market.

Of course the person will still lose their home and all the money they have spent on the mortgage up until now. This is obviously soul shattering for a family and these programs don’t solve the whole problem. If some kind of middle ground could be found where both parties keep share the value of the home, maybe just part selling back to the bank, who can then sell the portion onto an investor, then maybe that could provide a more favorable situation.

What do you think about this new program? Do you see potential for people facing foreclosure or is this all for the banks benefit?

I’m looking forward to your thoughts.

Related: February Home Sales

Thanks for reading – Bank of America Pilot Program

February New Homes Permits

February New Homes Permits – When a builder applies for a permit it often means they have confidence that in about a year they will be able to sell the newly built home. So the fact that February saw a rise shows some confidence in the housing market.

February New Homes Permits

February New Homes Permits

February New Homes Permits

February saw a slight dip in existing home sales (see our article) but it seems that there was a 5% rise in permits for building single family homes and apartments. This is the largest rise since October 2008. Needless to say a 5% rise is quite good news and goes hand in hand with all the other factors that show the market may be making a full recovery. As a side note though many economists feel that it is only about half the healthy amount needed for healthy growth but we have to remember this is a recovery.

There seems to be an air of growing consumer confidence in the housing market. February also saw the lowest Fixed Rate mortgages since records began in 1971 and the jobs market is steadily showing rises, at least according to government figures.

Pair this with the large amount of affordable homes coming onto the market, much likely due to many foreclosures from the downturn getting back onto the listings, and it is easy to see where the confidence is building and why.

Still, betting on a new home being able to sell amongst all the existing low cost foreclosures available is quite a risk and one that I guess many builders are hoping will be all but gone in the next year.

Also, what about all the new homes that have been sitting unsold or even unfinished. They need to get themselves back in the market and sold too.

I do think the picture looks pretty good and I really hope things do get back to good solid levels but we know all too well how easily things can turn again!

More details can be read in this article from Canadian Business.

I’d love to have your thoughts on the current state of the housing market, this increase in new home permits and anything else you would like to comment on.

Thanks for reading – February New Homes Permits

January Pending Home Sales

Each and every month many people look to the pending home sales to try and help them gauge where the market may be going. Sadly December 2011 saw a 3.5% drop but it wasn’t necessarily as bad news as it initially seemed due to the time of year and comparing to the December before. January 2012 was predicted a 1.5% rise but did it perform as expected?

The good news for those who track these kinds of things is that it did hit the 1.5 target, actually it hit it and carried on up to a full 2% rise.

January Pending Home Sales

January Pending Home Sales

The data, which only represents contracts and not actual closings, has relevence because it shows an upward trend from this time a year ago. It rose from 95.1 in December 2011 to 97.0 in January 2012. That makes it a full 8% higher than in January 2011 when it was 89.8. This makes it at the highest point it has been since April 2010 when it was 111.3, that upswing coincided with people taking advantage of the home buyer tax credit.

But what does all of this mean?

Realistically the numbers don’t mean a whole lot to the you’s and I’s of the world. A number is often an arbitrary thing anyway, right? Ok, even if you do fully understand it there is no harm in looking at the simple picture.

On a simple front the trend is going up compared to last year. More contracts are being signed which I guess means more homes are being closed. In housing market terms I guess that is good! What I would like to know is if that means lending is on the rise or if more people are putting more money down, hopefully the latter!

If more homes are being sold on less mortgage then in my eyes that is positive. If people are borrowing higher sums of money again and crushing themselves to make payments then this could be the beginning of another bad cycle.

Anyway, let us just hope it is all the positive side of things. Homes sales are up and it is a good indicator that they should start rising more for the Spring rush that normally happens. More homes being sold and more repo’s being cleared will help straighten out the mess and maybe get some money flowing more smoothly through the hard times.

Hopefully we’ll find that foreclosures begin to drop steadily too.

I would love to hear your thoughts on these numbers and the housing markets in general.

More info can be found on the article from Realtor.org.

Thanks for reading.