The U.S. has experienced two decades of slow but steady housing market growth, paired with inventory growth that has suffered through both the Great Recession and the pandemic. Only now is it returning to 2006-2007 levels, with a typical annual increase of over 1%. A new study by StorageCafe analyzed data from nearly 500 cities from the past 18 years to determine the cities with the fastest growing housing markets, and the South was a clear winner. More than 30 of the top 50 growth cities were in the South, and almost half of those were in Texas.
In 2023, total inventory hit 144 million housing units, a 16.7% increase from 2005. But even with continued building, housing supply still falls short and prices keep rising. From 2005 to 2023, single family homes increased by only 16.7%, with annual expansions remaining below 1%. Middle housing, such as duplexes and condos, had an underwhelming 11.3% growth in that same period. (The good news is, 2022 saw an accelerated growth rate of 1.6% year-over-year.) The leader has been the multifamily sector, where housing stock increased by 54% to over 15 million apartment units by 2023. Despite all that, Freddie Mac estimates that vacancy rates are 3.7 million homes below historical norms.
For their study, StorageCafe analyzed 489 cities with populations in excess of 55,000, ranking them based on local inventory growth across various residence types (e.g., single-family, multifamily, middle housing, mobile homes) between 2005 and 2023. They also incorporated data on housing availability (units per capita), pricing, and employment.
America’s Boomtowns: Which Cities Grew Housing Inventories the Fastest?
Regionally, the South takes the crown, with 31 cities among the top 50 for overall housing inventory growth, nearly half of which are in Texas. Florida, Texas, and North Carolina were three of the most popular states for relocation, and this accelerated migration has fueled construction to meet the surging housing demand. In the West, 18 cities saw substantial increases in housing inventories, but in the Northeast, only one, Sioux Falls, South Dakota made the grade.
The South Led in Growth, and Texas Led the South
With its strong job market, business-friendly atmosphere, and amenity-rich communities, Texas has become a migration magnet. This led to an upswing in housing demand and intensified construction activity. Today, Texas leads the nation in housing inventory growth, with 15 cities in the top performers in housing stock increases from 2005 to 2023.
Leading Texas, and the nation, was Frisco, in the Dallas metro area, which itself has a high density of top-growth markets. From 2005 to 2023, Frisco more than tripled its housing inventory to over 85,000 units, and ranks first nationally for both multifamily and single family housing stock increases. Frisco’s local apartment stock skyrocketed by a jaw-dropping 1,200%, totaling more than 17,000 units in 2023, while single family homes rose by 225%, reaching 61,000 units.
McKinney, also in the Dallas area, had the second most significant housing stock expansion, increasing 127% to nearly 79,000 units. McKinney had the fastest-growing middle housing stock, up 185%. Nearby Allen, TX followed with an impressive 182% growth in middle housing. And rounding out the top three was The Woodlands, where housing stock grew 84%, creating a housing inventory of almost 48,000 units.
The rest of the South contributed as well. North Carolina had four cities add to the overall housing inventory, including Cary (with a 78% overall increase) and Charlotte (with a 245% increase in multifamily housing). And Florida added several cities to the top 50, including Port St. Lucie (99% growth in residential supply growth), Cape Coral (67%), and Orlando (50%).
Heading west, Rio Rancho led the New Mexico metros with a 73% increase in housing growth, taking their inventory to 43,000 units. An expanding business environment and growing job opportunities fueled Phoenix-adjacent metros of Gilbert, Avondale, and Surprise to a 67% increase in housing stock, with Avondale and Surprise just behind at 62% each. And in Sin City, North Las Vegas and Henderson both grew their population by over 50%, leading to North Las Vegas’ 65% growth in housing stock (but Henderson still had a higher total number of units at 147,000).
Meanwhile, California claimed six of the top 50 cities, with Irvine leading the way with a 70% housing stock increase, fed by an 82% population jump. And in Indio and Clovis, housing inventories rose at similar rates of 59% and 57%, respectively.
And then there’s Sioux Falls. The South Dakota city might be the only Midwest state in the top 50, but it shows up well: job growth up 42% since 2005 and population up 56%. This led to an almost 60% increase in housing stock, with single family homes topping 50,000 units.
Home Prices Continue to Climb Despite Housing Inventory Growth
Housing inventories might have risen in 91% of the cities analyzed, but that didn’t stop home price increases. Those prices surged in nearly all cities (99.4%) from 2005 to 2023, with supply working hard to keep up with demand. (Apartment rents similarly rose in every city studied.) And while the multifamily sector might have boomed, it still fell short of meeting demand, which contributed to the sustained rise in rental prices.
The Bright Side
That said, there are encouraging signs. The Sunbelt and Mountain West regions are actively building, as well as cities in Texas, Florida, and Utah. New construction technology and strategic zoning changes are also paving the way; although obstacles such as rising costs and supply chain delays persist, the commitment to expanding inventory remains strong. These efforts are gradually creating a more balanced housing landscape, bringing things closer to meeting the nation’s housing needs.
Click here for more on StorageCafe’s study of the nation’s fastest growing housing markets.
