Mining the data field: 3 hottest housing markets to watch in 2022
America is on the move – and Buildertrend’s data shows us where to.
The nation is undergoing one of its greatest mass migrations in modern history due to rises in remote work opportunity, shifting economies brought on by the pandemic and the desire to relocate to less expensive, less densely populated areas. This is all good news for new home builders.
Just the summer after COVID-19 altered life as we once knew it, the demand for new housing spiked. This time last year, Buildertrend’s proprietary data showed job starts increased as much as 31% since April 2019. Business is booming – and it will continue to do so as home buyers continue to move across country.
For many of today’s homeowners, moving from one suburb to the next isn’t going to cut it. They’re looking for fresh starts hundreds of miles away. Think changing cities and states, not just zip codes.
So, where are Americans flocking to? What states seem to be winning (and losing) the most residents? What can Buildertrend’s data tell us about U.S. migration patterns over the past year? We’re mining our data field to answer all these questions.
Home builders in these fastest-growing housing markets, prepare.
Top 4 states where people moved from
We start our housing market watch examining where Americans are relocating from. To do so, we measured all new home builds in our system with different states listed than the one in the home buyer’s original contact. All 2021 jobs entered into Buildertrend’s construction software were taken into account.
After doing so, one takeaway is clear: Costly coastal living may be just that … too costly. The top four states experiencing an exodus were all located on the East Coast, one of the nation’s more expensive regions.
The leader was New Jersey, where 24.2% of all new homes built by current residents listed a new state. Here’s how the top four breaks down:
- New Jersey – 24.2%
- New York – 17.3%
- Maryland – 16%
- South Carolina – 16%
These states needn’t fret yet. It’s likely a portion of these percentages include residents building a second home in another state, too.
Top three housing markets to watch for new home builders:
It appears Americans are trading seaside views and shoulder-to-shoulder city living for life in the Heartland. We cross-examined data showing the top states with new residents alongside year-over-year job start price increases per state.
Three hottest housing markets came out on top when comparing figures from 2021 with 2020.
For contractors, these are the best states to build a house if you’re looking to have an influx of demand and also grow your profits. You can build more and ask for more, too.
- Number of job starts increase year over year – 16.5%
- Price to complete increase year over year – 24.4%
- Number of job starts increase year over year – 22.3%
- Price to complete increase year over year – 14%
- Number of job starts increase year over year – 9%
- Price to complete increase year over year – 24%
Though these states are more centrally located than the New Yorks and New Jerseys of the East Coast, they aren’t without their fair share of cities. Des Moines. Grand Rapids. Chicago. The list goes on.
Buildertrend’s proprietary data seems to confirm already established moving trends. Americans are relocating to smaller cities that offer lower costs of living, more space and often less crime.
With remote work now an option for millions of Americans, COVID-19 has forced many to slow down, re-evaluate and begin making changes that offer greater prosperity. And there’s no arguing with this fact: A dollar goes a lot further in Ann Arbor than it does in New York City.
Software for new home builders everywhere
No matter where they build, home builders nationwide are feeling the effects of this great migration. As COVID-19 rates rise and fall, Americans continue to shuffle around, with some even returning back to the cities they once left.
The best builders are doing everything they can to keep up. That means having construction project management software on their side. Buildertrend is the leading choice for the residential industry – and you can try it now, risk free.
It’s got the digital tools savvy contractors need to keep up with demand. We’re helping the nation builder better from Alaska to Florida – and everywhere in between.
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