The number of new homes up for sale in the U.S. South has reached an all-time high, new government data released this week revealed. 293,000 new homes were still on the market in June, exceeding the previous historical high of 291,000 homes reached in August 2006. This is a stark contrast to other regions of the United States where supply is tight and developers race to build new homes to meet demand.
Despite large-scale migration to southern states including Florida and Texas, the region does not have a supply shortage, with housing availability potentially assisting to push down prices, particularly in the post-pandemic market. According to PulteGroup CEO Ryan Marshall, the ample property supply in Florida and Texas has decreased the need for the company to build new homes in those states. New home orders for the company declined by 9% in Florida and 8% in Texas during the second quarter, Marshall noted.
“These markets are now in the process of finding the new clearing price needed to work down any excess inventory,” the PulteGroup CEO revealed to analysts. In Texas specifically, investors appear to be looking to exit the property market, Realtor.com senior economic research analyst Hannah Jones observed. 13.6% of Texas property sellers are investors, higher than the 8.4% average for the state from 2017 until 2019.