The metro Orlando counties where the most expensive homes are being built

Orange County is one of the cheapest big counties in the U.S. to build a house or apartment, but construction costs in most other local counties are higher than the national average.

Inflation has increased the cost of building materials by 33% since the beginning of the pandemic, and supply-chain challenges over the last two years have contributed to higher costs and project delays for single-family and apartment construction.

Out of 87 large U.S. counties, Orange County ranks the 58th cheapest place to build a house, according to a recent report by Construction Coverage.

Counting single-family and multifamily homes, authorized units in Orange County have an average building permit value of $204,812 compared to $218,791 per unit nationally. Researchers calculated the average permit value per unit authorized and ranked counties accordingly.

Brevard County ($297,127) was No. 6 on the list of 112 midsize counties, while Lake ($264,750) was No. 21, Volusia ($257,101) was No. 26, Seminole ($192,241) was No. 82 and Osceola ($186,772) was No. 89.

The data used in the analysis came from the U.S. Census Bureau’s Building Permits Survey in 2021, the most recent data available.

A total of 12,890 units were authorized in 2021 in Orange County, compared to almost 1.74 million nationwide. Single-family units made up 36.8% of the total in Orange County, compared to 64.2% of the units nationwide.

Here's how much the average unit costs to build in local counties and how they rank among all 327 counties in the report:

The U.S. already had a housing stock shortage before Covid-19, and the pandemic sent available inventory to record lows. As buyers rushed into the market, the limited availability of homes caused competition to surge and pushed prices higher.

Mortgage rates climbed this year, slightly reducing some demand from buyers. Still, homebuilders are working hard to secure the land and permits necessary to build and keep up with the market, Surrey Homes LLC Executive Vice President Christian Swann previously told Orlando Business Journal. "Builders need lots, and they need them yesterday."

New construction homes in metro Orlando command higher prices than existing homes, according to Redfin Corp. (Nasdaq: RDFN). The median sales price of a new construction house in December was $404,662, compared to $350,000 for existing homes, according to the latest data from Redfin.

Residential construction activity remains strong across the region. The value of metro Orlando residential construction started in April was $820 million, according to the latest data from Dodge Construction Network. That’s an 11% increase from $741 million in April 2021. 

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