New home construction starts in the Triangle hit a milestone in the first quarter exceeding 10,000 annualized units for the first time since 2008, according to a residential market report by Metrostudy.
New home starts counted from the previous 12 months hit 10,437 units, a 22 percent increase from the number of annualized starts the year prior, a clear indicator, says Jay Colvin, director of Metrostudy’s Raleigh-Durham Triangle region, that the Triangle home builder market is back to "normal."
"We should be building more due to total population and job growth, but for the price points that we are building, this is what the normal should be," he says.
For the first quarter 2016, builders broke ground on 2,532 new units, which is up nearly 31 percent from the first quarter the year prior. Colvin says the first quarter numbers are likely inflated a bit because local builders have been trying to play catchup from bad weather delays two years ago that slowed progress in lot development.
According to the report, homes priced between $200,000 to $350,000 are in the sweet spot and leading the market in production growth with 54 percent of the total market share.
New homes priced between $400,000 to $499,000 had the highest percentage gain in volume with 50 percent more starts than a year ago.