A deep data dive reveals that Houston, followed closely by San Antonio and Austin, was the most active city for real estate development over the past decade from 2013 through 2022. Notably, the self-storage sector has experienced the most significant inventory expansion, with a growth of 25 percent over the decade.
A StorageCafe article titled “US’s Most Active Cities For Real Estate Development,” provides an in-depth analysis of new construction
in the country’s 100 largest cities over that period.
StorageCafe highlights that 15 out of the top 20 cities for real estate development are located in the Sun Belt region. In terms of residential construction, Houston leads the way with the highest number of building permits issued for single-family homes. On the other hand, New York City tops the charts for multifamily units.
San Antonio ranks second in the analysis, with lively industrial, residential, and self-storage sectors. The city’s residential construction aims to accommodate the steady influx of new residents.
Austin takes the third spot with significant growth in apartment construction, attracting professionals from various industries. Fort Worth and Dallas also performed well in real estate development, with Fort Worth having a substantial increase in population, leading to residential and commercial construction, while Dallas excelled in industrial construction.
Commercial real estate sectors have also experienced notable changes. The self-storage industry has expanded considerably, adding over 462 million square feet of new storage space in the last decade. Industrial construction has seen consistent growth, with over 3.5 billion square feet of new space built nationwide. However, office construction has decelerated due to the shift toward remote work, while retail construction has declined due to the rise of online shopping.
The StorageCafe article highlights the overall construction activity in the residential market, noting that while the single-family market is lagging, the multifamily sector has seen an increase in building permits. The multifamily sector has shown a 47 percent increase compared to the previous decade, contributing to easing the nation’s housing shortage.
The analysis focuses on the most active cities for real estate development. The Sun Belt region, comprising Southern and Southwestern urban areas, has seen tremendous growth. The top five cities for real estate construction are all in Texas, with Houston leading the pack. Houston has experienced robust residential and commercial construction, driven by consistent demand, a diversifying economy, and a strong job market.
Looks like Texas continues to be a hot spot for the real estate industry, which will surprise no one who has spent any time in the Lone Star state. Read the full StorageCafe article here.
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