Tuesday, May 26, 2009

Orlando New Homes Biggest Supply

Orlando has the biggest supply of vacant new homes of any major U.S. metropolitan area, according to a Metrostudy analysis of housing data from the markets it surveys nationwide.

The four-county metro area has an 11.7-month supply of finished-but-empty residential properties, compared with a normal supply of one-and-a-half to three months for most major markets, the Houston-based company said last week.

"The higher the months of supply, the greater the downward pressure on starts and prices, and Orlando and coastal Southern California, along with Las Vegas and San Diego, have the most severe problems," said Brad Hunter, Metrostudy's chief economist.

The Orlando market has been cutting into its built-but-unsold inventory, with 18,423 move-ins and 12,000 starts during the 12 months that ended March 31. But other markets are making faster progress: Atlanta, for instance, had more than 20,007 move-ins and fewer than 9,000 starts for the same period.