3 Counties Seeing the Most Housing Growth in 2024

As a title insurance company, staying updated on housing market trends is crucial for us to provide accurate and timely services to our clients. In 2024, several counties across the United States have seen a significant increase in housing inventory. Understanding the reasons behind these trends helps us better serve our clients and anticipate market needs. Here are the top three counties experiencing an uptick in housing inventory and the primary factors driving these changes.

1. Maricopa County, Arizona

• Population Growth and Migration: Maricopa County continues to attract new residents due to its favorable climate, job opportunities, and relatively affordable housing compared to other major urban areas. This influx of people has prompted increased residential construction to meet the demand (Realtor.com).
  • Attraction of New Residents: People from higher-cost states, particularly California, are relocating to Maricopa County for its relatively affordable cost of living and favorable weather. The county’s growing reputation as a desirable place to live is bolstered by its vibrant culture, outdoor recreational opportunities, and strong community amenities.
  • Economic Opportunities: The county has a burgeoning job market with a diverse economic base that includes technology, healthcare, finance, and manufacturing sectors. This economic diversity provides stability and attracts job seekers from across the country, further fueling population growth.
  • Educational Institutions: The presence of major universities and colleges, such as Arizona State University, attracts students and faculty who often choose to settle in the area, contributing to long-term population growth and a need for more housing.
• Economic Expansion: The local economy is thriving, with significant investments in technology and healthcare sectors. This economic prosperity has spurred new housing developments to accommodate the growing workforce.
  • Technology Sector Growth: The technology industry in Phoenix and surrounding areas has seen substantial growth, with many tech companies either relocating or expanding their operations in the county. This growth attracts a skilled workforce, necessitating more housing developments to accommodate these employees.
  • Healthcare Industry Boom: The healthcare sector is another significant contributor, with numerous hospitals, research institutions, and medical facilities expanding their services. The increasing demand for healthcare professionals leads to a rise in housing needs for this workforce.
  • Real Estate Investment: The strong economic climate has attracted both domestic and international real estate investors. These investors are capitalizing on the county’s growth potential, funding large-scale residential projects that add to the housing inventory (AZCentral).
• Government Incentives: Local government policies, including tax incentives and streamlined building permit processes, have encouraged developers to invest in new housing projects, increasing the overall housing inventory.
  • Tax Incentives: The local government offers various tax breaks and incentives to developers, reducing the financial burden associated with large-scale residential projects. These incentives make it more attractive for developers to invest in new housing projects.
  • Streamlined Permitting Processes: Efforts to streamline the building permit process have reduced the time and bureaucratic hurdles associated with starting new construction. This efficiency encourages developers to undertake more projects, knowing they can move from planning to building more quickly.
  • Zoning Reforms: Recent zoning reforms have allowed for higher-density housing developments in areas previously restricted to single-family homes. These changes have opened up new areas for residential development, increasing the overall housing stock and providing more diverse housing options.

2. Harris County, Texas

• Suburban Development: There has been a notable trend of suburban expansion in Harris County, with new communities being developed to cater to families seeking more space and affordable living options outside the urban core of Houston.
  • Affordable Housing Options: The suburban areas of Harris County offer more affordable housing compared to the urban core of Houston. Families and individuals seeking more space and better value for their money are increasingly moving to these suburbs, prompting developers to build new residential communities to meet the demand.
  • Family-Friendly Environments: Suburbs in Harris County often provide a more family-friendly environment, with access to better schools, parks, and recreational facilities. This attracts families looking for a higher quality of life, spurring the development of new housing projects tailored to this demographic.
  • Transportation Infrastructure: Improvements in transportation infrastructure, such as expanded highways and public transit options, have made commuting from suburban areas to urban job centers more feasible. This connectivity encourages people to live in the suburbs while working in the city, increasing the need for suburban housing.
• Post-Pandemic Shifts: The pandemic prompted a shift towards remote work, leading many individuals to relocate to areas with more spacious housing options. This demand has driven up housing inventory as developers respond to these new preferences.
  • Remote Work Trends: The shift towards remote work has led many people to reconsider their living arrangements. With the flexibility to work from home, many are opting to move away from crowded urban centers to more spacious and affordable suburban or rural areas within Harris County.
  • Desire for Larger Homes: The experience of lockdowns and working from home has increased the demand for larger homes with dedicated office spaces, bigger yards, and more amenities. This shift in preferences has driven the development of new housing that meets these needs.
  • Health and Safety Considerations: Post-pandemic, there is a heightened awareness of health and safety, leading people to seek less densely populated living environments. Suburban and exurban areas offer more space and a perceived lower risk of virus transmission, further driving housing inventory growth in these regions (Urban Edge).
• Infrastructure Improvements: Significant investments in infrastructure, including road expansions and public transportation projects, have made previously less accessible areas more attractive for residential development.
  • Road and Highway Expansion: Significant investments in expanding roads and highways have improved access to previously less accessible areas. These infrastructure upgrades reduce travel times and congestion, making suburban and exurban areas more attractive for residential development.
  • Public Transportation Enhancements: Improvements and expansions in public transportation, including bus routes and light rail systems, have made it easier for residents in suburban areas to commute to Houston’s urban core. This increased accessibility encourages the development of new housing projects in areas served by improved public transit.
  • Utility and Service Upgrades: Investments in utilities and public services, such as water, sewage, and electricity, have supported new housing developments. Ensuring that these services are reliable and can handle increased demand is crucial for sustaining housing growth.

3. King County, Washington

• Tech Industry Boom: The robust growth of the tech industry in Seattle and its surrounding areas has led to increased housing demand. Companies expanding their operations in the region have contributed to a surge in residential construction projects.
  • Expanding Tech Companies: Major technology companies, including Amazon, Microsoft, and numerous startups, continue to expand their operations in the Seattle area. This growth brings an influx of employees who need housing, prompting developers to build more residential properties to accommodate this demand.
  • High Salaries and Housing Demand: The tech industry offers high-paying jobs, which increases the purchasing power of many residents. This demand for high-quality housing drives the development of new and upscale housing projects, contributing to the overall increase in housing inventory.
  • Innovation and Urban Development: The tech boom has also led to a culture of innovation and rapid urban development. Tech companies often collaborate with urban planners and developers to create smart, tech-integrated housing solutions, further boosting housing inventory (Seattle Times).
• Urban to Suburban Migration: Similar to other regions, there is a noticeable migration from urban centers to suburban areas within King County. This shift has led to increased housing development in suburban neighborhoods.
  • Desire for More Space: Many residents are moving from densely populated urban centers like downtown Seattle to suburban neighborhoods where they can find larger homes with yards, more privacy, and a better quality of life. This trend has spurred new housing developments in suburban areas.
  • Family-Friendly Suburbs: Suburban areas in King County, such as Bellevue, Redmond, and Kirkland, offer excellent schools, parks, and community amenities, making them attractive to families. The demand for family-friendly housing options has led to increased construction in these suburban locales.
  • Improved Commutes: Investments in transportation infrastructure, including expanded road networks and public transit options like the Link light rail, have made commuting from suburbs to the urban core more convenient. This improved connectivity encourages people to live in suburban areas while working in the city, increasing the demand for housing in the suburbs.
• Zoning Changes: Recent changes in zoning laws have allowed for higher-density housing developments in areas previously restricted to single-family homes, contributing to a rise in new housing units.
  • Higher-Density Housing: Changes in zoning laws have allowed for higher-density housing developments in areas that were previously limited to single-family homes. This includes the development of apartment complexes, townhomes, and mixed-use buildings, which has greatly increased the housing inventory.
  • Accessory Dwelling Units (ADUs): New regulations have made it easier for homeowners to build accessory dwelling units on their properties. ADUs, such as backyard cottages and basement apartments, provide additional housing options and help increase the overall housing supply.
  • Transit-Oriented Development (TOD): Zoning changes have promoted transit-oriented development, encouraging the construction of high-density housing near public transit hubs. This approach not only increases housing inventory but also supports sustainable growth and reduces traffic congestion by promoting public transportation use.

Conclusion

The rise in housing inventory in Maricopa County is the result of a combination of strong population growth, robust economic expansion, and supportive government policies. The county’s ability to attract new residents and businesses, along with proactive measures to encourage development, creates a dynamic housing market poised for continued growth. The increase in housing inventory in Harris County is driven by a combination of suburban development, post-pandemic lifestyle shifts, and significant infrastructure improvements. King County is driven by the West Coast tech industry boom, urban to suburban migration, and strategic zoning changes. It seems as though the West, North and South, are seeing favorable factors creating an environment for all, attracting both developers and new residents.