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.
The analysis found that in Tennessee, 21,863 new housing units have been authorized, which is 322.9 units for every 100,000 residents. Out of all U.S. states, Tennessee is investing the 10th most in new housing in 2020.
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/