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home news index texas is the strongest housing market; florida, arizona and nevada are the weakest

Texas is the strongest housing market; Florida, Arizona and Nevada are the weakest

October 22, 2009 - Jim Haughey

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Once the largest US housing market, Atlanta has experienced the largest decline in residential construction since the peak of the housing boom early in 2006. Homebuilders tried to increase their market share by using cheap credit and ignored signs of slowing sales growth. Phoenix, Riverside, Miami and Los Vegas made this list the same way. The other five cities made the list because of cutbacks stemming from the recession that followed the housing collapse. Housing construction is now higher than in early 2006 in more than forty small metro areas. Most of these cities sat out the credit-fueled housing boom.

Largest Increase in Permits from
Early 2006 National Housing Boom Peak
(3 month total)
  Largest Decrease in Permits from
Early 2006 National Housing Boom Peak
(3 month total)
Metro # of Permits   Metro # of Permits
Lake Charles, LA 422   Atlanta -15,085
Fargo, ND 399   Chicago -10,136
Gulfport-Biloxi, MS 342   Phoenix -10,033
Lawton, OK 288   New York -9,679
Bismarck, ND 225   Riverside -9,641
Billings, MT 179   Dallas -8,651
Cedar Rapids, IA 168   Miami -8,193
Beaumont, TX 168   Houston -6,726
Lubbock, TX 157   Los Angeles -6,523
Flagstaff, AZ 137   Las Vegas -6,325
Source: Census Bureau

The four largest cities in Texas dominate the list of the largest single family housing markets. The recession came late to Texas because of its large energy industry which continued to expand into 2009. Recession in the energy industry will persist well into 2010 so the Texas cities will slip down the list next year. But Houston, Dallas and Austin will stay on the list because Texas is still attracting immigrants and businesses. Hurricane rebuilding, military post and college towns dominate the list of the cities withy the most intense housing development. Only two resort cities remain on the list, neither of them in Florida.

Top Single Family Permit Metros   Permits per 1,000 population (last 12 months)
Metro SF Permits
Last 12 Months
  Metro # of Permits
Houston 18,332   Gulfport-Biloxi, MS 11.052
Dallas-Fort Worth 11,772   Auburn-Opelika, AL 9.631
Washington 8,746   Jacksonville, NC 8.853
Austin 6,795   Huntsville, AL 8.150
Phoenix 6,579   Fayetteville, NC 7.335
Atlanta 6,144   College Station-Bryan, TX 7.212
New York City 5,982   Wilmington, NC 7.118
Philadelphia 5,645   Fargo, ND-MN 6.766
San Antonio 5,230   Columbia, MO 6.239
Chicago 4,609   Coeur d'Alene, ID 6.147
Source: Census Bureau, Reed Construction Data

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