20 metros where home construction is slowing the most

Simon Kadula // Shutterstock Homebuilding slowed dramatically across the country in 2022 as mortgage rates rose, scaring away potential buyers. The construction starts of single-family homes dropped nearly 19% year over year in September, while building permits fell 17%, according to the Census Bureau. Building permits are seen as a measure of future construction. In October 2022, home sales dropped for the ninth straight month. U.S. homebuilders did exceptionally well at the beginning of the coronavirus pandemic. Interest rates fell to a record low, demand soared as people cooped up at home looked for more room, and home prices rose 40% in two years. Homebuilders could not keep up. But that scenario flipped as interest rates rose and the market suffered a sharp setback. Three of the top 20 metropolitan areas that made this list are in Arkansas, while another five are in West Virginia. Both states are among the poorest in the country. Arkansas home prices ranked the third-lowest in the country, according to the Arkansas Economic Development Commission. Sixteen of the 20 metropolitan areas are in the South or Midwest. The metropolitan area that tops the list is Bremerton, Washington, a one-hour ferry ride from Seattle and home to the West Coast’s second-largest naval base, Naval Base Kitsap. Housing prices are flat across the Seattle area compared to a year ago, and in Kitsap County, the median home sold for $505,471 in November, up about 1%. Nashville MLS analyzed data from the Census Bureau’s Building Permits Survey to rank the top 20 metropolitan areas where construction is slowing the most based on the decrease in approved building permits from January and February 2022 to September and October 2022. The analysis used two months of data to account for monthly variation and was limited to 236 metros with 100 or more permits in January and February out of the 384 metros with available data. Metro areas often include the identified city, nearby municipalities, and suburbs. Homebuilders are warning that high interest rates could continue to worry buyers throughout 2023. #20. Chico, California TonLammerts // Shutterstock – Drop in housing construction permits since early in the year: -52.6% — Permits authorized January & February: 437 — Permits authorized September & October: 207 #19. Sherman, Texas Edward H. Campbell // Shutterstock – Drop in housing construction permits since early in the year: -53.4% — Permits authorized January & February: 296 — Permits authorized September & October: 138 #18. Clarksville, Tennessee Real Window Creative // Shutterstock – Drop in housing construction permits since early in the year: -54.1% — Permits authorized January & February: 1,100 — Permits authorized September & October: 505 #17. Portland, Maine Wangkun Jia // Shutterstock – Drop in housing construction permits since early in the year: -54.1% — Permits authorized January & February: 993 — Permits authorized September & October: 456 #16. Columbus, Georgia ungvar // Shutterstock – Drop in housing construction permits since early in the year: -55.1% — Permits authorized January & February: 285 — Permits authorized September & October: 128 #15. Greensboro, North Carolina Lena Platonova // Shutterstock – Drop in housing construction permits since early in the year: -56.3% — Permits authorized January & February: 693 — Permits authorized September & October: 303 #14. Salinas, California Matt Gush // Shutterstock – Drop in housing construction permits since early in the year: -58.6% — Permits authorized January & February: 222 — Permits authorized September & October: 92 #13. Baltimore Imagenet // Shutterstock – Drop in housing construction permits since early in the year: -59.2% — Permits authorized January & February: 1,539 — Permits authorized September & October: 628 #12. Kennewick, Washington J.D.S // Shutterstock – Drop in housing construction permits since early in the year: -59.5% — Permits authorized January & February: 482 — Permits authorized September & October: 195 #11. New Bern, North Carolina ThomasPhoto // Shutterstock – Drop in housing construction permits since early in the year: -62.0% — Permits authorized January & February: 192 — Permits authorized September & October: 73 #10. Montgomery, Alabama New Home Construction // Shutterstock – Drop in housing construction permits since early in the year: -63.0% — Permits authorized January & February: 173 — Permits authorized September & October: 64 #9. Provo, Utah Jacob Boomsma // Shutterstock – Drop in housing construction permits since early in the year: -63.2% — Permits authorized January & February: 2,035 — Permits authorized September & October: 749 #8. Ogden, Utah Paul W Thompson // Shutterstock – Drop in housing construction permits since early in the year: -65.8% — Permits authorized January & February: 1,239 — Permits authorized September & October: 424 #7. Goldsboro, North Carolina karamysh // Shutterstock – Drop in housing construction permits since early in the year: -66.7% — Permits authorized January & February: 147 — Permits authorized September & October: 49 #6. Savannah, Georgia Sean Pavone // Shutterstock – Drop in housing construction permits since early in the year: -66.9% — Permits authorized January & February: 812 — Permits authorized September & October: 269 #5. Olympia, Washington John T Callery // Shutterstock – Drop in housing construction permits since early in the year: -70.0% — Permits authorized January & February: 323 — Permits authorized September & October: 97 #4. Wenatchee, Washington Leena Robinson // Shutterstock – Drop in housing construction permits since early in the year: -73.3% — Permits authorized January & February: 318 — Permits authorized September & October: 85 #3. Colorado Springs, Colorado Thomas Barrat // Shutterstock – Drop in housing construction permits since early in the year: -73.6% — Permits authorized January & February: 2,298 — Permits authorized September & October: 607 #2. Muskegon, Michigan Jacob Boomsma // Shutterstock – Drop in housing construction permits since early in the year: -77.1% — Permits authorized January & February: 253 — Permits authorized September & October: 58 #1. Bremerton, Washington ungvar // Shutterstock – Drop in housing construction permits since early in the year: -79.4% — Permits authorized January & February: 533 — Permits authorized September & October: 110 This story originally appeared on Nashville MLS and was produced and distributed in partnership with Stacker Studio.