Published by FOX Business | August 10, 2023
San Antonio, Dallas, Orlando among US cities facing major housing shortage
Prospective homebuyers across the U.S. are facing a chronic shortage of available houses, but the scarcity is worse in some parts of the country, according to new Bank of America research.
The analysis found four cities are at the epicenter of the crisis, with three located in Texas — San Antonio, Dallas and Houston. Finishing off the list is Orlando, Florida.
“The hot quadrant includes cities that continue to have fast inward population growth and already relatively stretched housing stocks,” the study said. “San Antonio, Dallas, Orlando and Houston all fall under this categorization.”
That is largely because these cities are experiencing high population growth, a “booming” labor market and low housing inventory. As of June 2023, Dallas and Orlando both recorded payroll growth that is substantially higher than the national average and continue to attract new residents looking for work, according to the report.
But that influx of new residents is a double-edged sword, with housing stock relative to population in these cities tumbling below the national average. The national average of housing units per capita was about 0.43% as of 2022, compared to just 0.39% in Dallas and 0.40% in San Antonio.
As a result, these cities are also seeing home price growth that is far higher than the typical level seen the past two years. When compared with the same month in 2019, home prices in Orlando were up 58%. Dallas saw prices increase by about 49%.
There are signs the cities are working to address the lack of available homes. All four cities saw higher-than-average permits issued per capita during the first five months of 2023, and new multifamily completions are set to hit a record high in 2024 as COVID-19-related disruptions dissipate.
