Tracy Cross & Associates, Inc.
2nd Quarter 2023
Production home builders in the Chicagoland region recorded 1,438 new construction sales during the 2nd Quarter 2023, the highest quarterly volume posted during this specific three-month period (April-June) since 2008. Compared to the 1,045 sales registered during the 2nd Quarter 2022, the 1,438 sales noted during the last three months reflected an increase of 38 percent.
Despite a rather sluggish first quarter of 2023, the second quarter surge brought sales for the first half of year in line with volumes posted during the same period in 2022. Specifically, area builders posted 2,643 net sales during the January-June 2023 timeframe, which compares with the 2,708 sales registered during the same six-month period last year.
By product sector, single family detached sales during the first six months of 2023 increased by 7.2 percent year-over-year, while townhome/condominium activity dropped by 14.5 percent, largely due to a more severe drop in high-end condominium sales in the city of Chicago.
Contributing to the region’s overall uptick in production home sales during 2nd Quarter 2023 were 201 contracts (or 14 percent of total sales) among 17 new suburban developments introduced during the last three months. Most of these new market entrants represent developments by the region’s largest home building companies, which include D.R. Horton, Lennar, Pulte, M/I Homes and Ryan Homes.
These same national homebuilders continue to dominate the region, accounting for nearly 80 percent of all new construction home sales during the first six months of 2023. D.R. Horton led with 599 transactions, followed closely by Lennar with 551 contracts. Rounding out the top five were Pulte with 398, M/I Homes (317) and Ryan (230).