Shifts in housing demand create new opportunities for housing development and housing investment.
In late March and early April, housing activity came to a near halt. Today, nearly half a year later, demand has rebounded, but the market dynamics have changed. Demand now resides in lower-density markets and areas where renters and buyers can remotely work and distance in larger spaces. Porch research has revealed that southern and mountain states are investing the most in new housing this year. Idaho, Utah, South Carolina and Arizona have permitted the most new housing units per capita, and Texas and Florida have issued the most housing permits in total. Prior to the global pandemic, populations were already shifting towards the sunshine belt. Growth in mountain states is an interesting shift in housing demand and we will monitor whether this trend continues once the health threat is behind us.