Denver, Dallas, Vegas Building Growth Improves in 2001

Six of 2000’s top 10 areas (in terms of sheer volume of permitted new residential construction) were able to improve upon their year-earlier totals during the first three-quarters of 2001. For most of the first two-thirds of this year, however, eight or nine of last year’s top markets had been running ahead of year-earlier activity levels.

Atlanta remains - by a margin of more than 44% over its nearest competitor so far this year - the nation’s leading volume metro area for home building. And 3.0% more permits were issued for new home construction in the metro Atlanta market during the first nine months of this year than over January-September of 2000, so the market remains reasonably strong even after recording gains of about 6% during both 1999 and 2000.

Among the rest of 2000’s top 10, Charlotte has seen the market cool most dramatically (with permit volume running more than 11% behind the 2000 pace through the first nine months of 2001). Losses in the Orlando, Washington D.C. and Phoenix metro areas have been relatively small, and each market continues to record a high volume of residential construction activity. Las Vegas, Denver, and Dallas - all markets that had a "down" year in 2000, in terms of permit growth - have come roaring back with double-digit over-the-year gains through the first three quarters of 2001.

Among the 15 metropolitan areas that made up the balance of 2000’s "Top 25" home building markets, 10 recorded more housing permits during January-September 2001 than over the comparable period last year. However, four metropolitan areas - Austin, Philadelphia, Seattle, and Detroit - registered steep declines of more than 10% in permit activity, according to preliminary data through September of this year.

Most of California’s "second-tier" metro areas continued to record solid gains in permit volume through the first nine months of 2001 (Fresno, +12.2%; Bakersfield, +10.4%; Modesto, +9.0%). And in the rest of the country, two areas - Raleigh-Durham (+13.3% through the first nine months of 2001) and Portland (+7.1%) - have come back strong this year after both recorded steep declines in permit activity between 1999 and 2000.

Among other areas that appeared on the list of "Top 50" residential markets during 2000, several of the strongest growth markets so far in 2001 are represented by Florida cities: Miami (+28.6%), Fort Myers (+15.2%), Jacksonville (+15.2%), and Sarasota-Bradenton (+11.7%).

Some other medium-sized metro areas with impressive permit volume and strong growth through three-quarters of 2001 include: Richmond (+35.6%), Albuquerque (+33.4%), Nashville (+18.7%), Kansas City (+17.8%), Greensboro (+15.6%), Salt Lake City (+15.3%), Colorado Springs (+14.5%), and San Antonio (+11.6%).