Early in the pandemic, housing activity came to an abrupt halt. Now, demand has rebounded, but the dynamics have changed. Housing demand has shifted to low-density markets and areas where homebuyers can purchase larger homes more conducive to remote work and distance learning models.

As a result of the shifting demand, home investors and developers are finding new opportunities to develop housing. After falling sharply at the beginning of the pandemic, new home construction has rebounded rapidly and is now near pre-pandemic numbers, according to research from Porch. New home sales follow a similar pattern, but new home sales have recently surpassed pre-pandemic numbers.

While new construction has rebounded, it varies significantly across the US. During the pandemic, new housing development has also shifted to follow new demand patterns. Porch research shows that southern and mountain states are investing the most in new housing this year.