According to a new report from Construction Coverage looking at the U.S. locations residential construction spending, Virginia has seen a 31.1% increase since the onset of COVID-19. Like many other sectors of the economy, residential construction took a sharp dip early on in the pandemic, when lockdowns and the accompanying economic uncertainty paused many activities. Since then, however, spending on residential construction has spiked. Researchers ranked states according to the percentage change in value of new residential building permits from Q1 2020 to Q1 2021. The total value of new residential building permits issued in Virginia during Q1 2021 amounted to approximately $1.9B—up 31.1% from $1.5B in Q1 2020.
More than a year into the COVID-19 pandemic, one of the biggest economic stories has been the red-hot residential real estate market. Housing inventory is at all-time lows, but low interest rates, government stimulus, increased household savings, and a growing number of first-time millennial homebuyers have led to strong demand nearly everywhere. Stories of fierce competition, bidding wars, and sales that close well above listing price are becoming common in markets all across the country.
When housing supply is low and demand is high, residential construction inevitably picks up as builders and developers try to meet demand. The same is true now. While disruption to global supply chains has driven up the price of building supplies like lumber, residential construction is booming.
The analysis found that the total value of new residential building permits issued in Virginia during Q1 2021 amounted to approximately $1.9B—up 31.1% from $1.5B in Q1 2020 which ranks 28th amongst states. Neighboring West Virginia is over double that at almost a 70% increase.
For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/cities-with-biggest-increase-in-construction-spending-2021