The amount of new housing being built in a given area can tell you a lot, from the state of the local economy to the number of new families moving there. And if you’re considering moving to a new state, understanding new housing trends can help you plan your move and your home purchase.

Texas, Florida, and California rank at the top for states for new housing in 2024, but that doesn’t tell the whole story. Many southern states like Texas, Florida, the Carolinas, and more are seeing a rise in new builds, in part, because of their rising populations.

If you’re considering a move and want to understand your new housing market, or you simply want to learn about housing trends in your state, this guide can help. 

What Counts as “New Construction Housing”?

According to Redfin, new construction housing generally refers to any housing that hasn’t been lived in before. In most transactions involving new construction housing, the builder is the seller. New construction can include both single-family and multifamily homes. 

For the purpose of this article, it specifically refers to the number of new housing units authorized by building permits, not necessarily new units completed.

Top States for New Home Construction in 2025

State Rankings by Total New Housing Units

Based on data from the U.S. Census Bureau for 2024, which is the last year for which there is complete data, the states with the most permits issued for new, privately-owned residential construction are:

1. Texas
2. Florida
3. California
4. North Carolina
5. Georgia
6. Arizona
7. South Carolina
8. New York
9. Tennessee
10. Washington

A simple explanation for some of these states being ranked so highly is that they have large populations. California, Texas, Florida, and New York are the four highest populated states, so you’d expect them to also have a lot of new construction.

But even more, Texas, Florida, the Carolinas, Georgia, and Arizona all top the list of the states with the greatest net migration, according to the New York Times.

Other possible explanations for why certain states have more new housing construction include greater land availability, more affordable new housing, and faster permitting.

Leaders by Per Capita New Construction (Units per 1,000 Residents)

While it’s helpful to know the states with the most new homes built, that data doesn’t necessarily tell the whole story. After all, the majority of states with the most new construction are also those with the highest populations. The list below breaks down the states with the most new construction permits per 1,000 residents, which gives us a better idea of how they stack up to one another:

1. Idaho
2. North Carolina
3. South Carolina
4. Arizona
5. Florida
6. Texas
7. Utah
8. Delaware
9. South Dakota
10. Tennessee

As you can see, this data tells a very different story. High-population states like California, Texas, Florida, and New York, which have a high number of new construction builds each year, don’t necessarily rank as high per capita.

Regional Trends in U.S. Housing Growth

When we break down the country regionally, the South accounts for the vast majority of new housing construction permits—more than the Northeast, Midwest, and West combined. This is unsurprising, given that Texas alone had more new construction permits in 2024 than most other regions overall.

Seasonality plays a role in the different building patterns by region throughout the year. For example, southern states may have more year-round construction than northern states that experience harsh winters. However, the data above is annual data, meaning seasonality shouldn’t play a role in the data.

Why These States Lead New Construction

There’s no one reason why some states have more new construction than others, as key factors may differ from state to state. However, we can point to a few key characteristics of states with robust new housing.

Population Growth & Migration Patterns

As we mentioned, several of the states with the most new housing are also those with the most new residents moving there. Based on New York Times reporting on net migration, the following states are among the top 20 for new residents and also sit on one of our lists above of states with the most new housing, either total or per capita:

• Texas
• Florida
• North Carolina
• South Carolina
• Georgia
• Arizona
• Tennessee
• Idaho
• Delaware

As more people move to these states, either from other states within the U.S. or from other countries, more new housing is required to accommodate those new residents.

It’s also worth noting that California and New York, which are both among the states with the most new housing construction, have experienced net losses in population in the past decade. However, they’re still among the largest population centers in the country.

Job Markets, Wages, and Industry Mix

The local job market, wages, and industries can all affect the rate of new housing construction. As wages rise and jobs are added, more people are able to afford new homes. There’s some correlation between states with high numbers of new housing construction and those with growing job numbers and wages.

For example, South Carolina, New Mexico, Idaho, North Carolina, New York, and Texas are all in the top 10 states for job growth as a percentage increase year over year. Those also sit on our lists of states with high new construction numbers. 

Similarly, several states in the top half for wage growth also have high new construction numbers. Those states include Idaho, California, Arizona, and South Carolina.

Texas is a good example of how a changing job market has evolved migration patterns. The state is a leader in some of today’s top industries, including growing industries like advanced manufacturing, aerospace, defense, biotechnology, energy, information technology, and more. It comes as no surprise, then, that more people are moving there to take advantage of careers in these industries.

Affordability, Land, and Regulation

A final set of factors that may impact new housing permits are local housing affordability, land availability, and local zoning and regulations. 

Surprisingly, there’s almost no overlap between states with the lowest home price-to-income ratio (meaning states where housing is cheapest compared to incomes). Instead, many of the states with the highest price-to-income ratios also have the most new construction.

While there are certainly other factors at play—for example, those states generally have higher incomes—we can likely say housing affordability isn’t the most important factor when it comes to new housing construction.

That still leaves land availability and local building regulations as possible factors at play. It could be the case that states with a high amount of new home construction also have plenty of land available for people to build on. 

Additionally, some states are more new-build-friendly than others. For example, according to Realtor.com’s state report cards for affordability and homebuilding, Texas and South Carolina have some of the most permissive local zoning laws, making it easier and faster for people to build new homes.

Buyer & Investor Implications

Opportunities for First-Time Homebuyers

As a first-time homebuyer, you likely know that some markets are especially difficult to break into, especially on a limited budget. Luckily, new housing construction can expand inventory. An area with more balanced supply and demand may result in fewer bidding wars and an easier time closing a deal.

Of course, a large number of new builds aren’t necessarily directly correlated with an easier housing market. Those areas with a lot of new housing going in are also often those with plenty of new residents moving in. Building new homes may keep things status quo rather than truly change the market. It’s important to understand the full picture of your local housing market, which differs from state to state and city to city.

New housing can also offer opportunities that buying an existing home doesn’t. For example, new housing often comes with incentives like warranties and closing credits to guarantee parts of the home and ease the financial burden of such a large purchase.

Where Builders and Investors See the Best Potential

While individual buyers are looking for those locations with affordable and readily available housing, investors and builders are looking for those areas where they can get the most bang for their buck.

Both rental growth and absorption (meaning the rate at which available homes sell in the area) were at record high levels in 2021 and 2022, but they’ve failed since then. However, some factors still make certain areas better or worse for investors. 

For example, Texas, which has the most new housing construction, has also had the most stagnant home prices, according to data from the U.S. Department of Housing and Urban Development. Other states with robust new housing, including New York, Idaho, and Utah, also had among the lowest home price growth.

Similarly, Florida had six of the top 10 markets with the largest rent declines. The other four markets can also be found in the South, where new housing construction is high.

From this, we can possibly infer that those areas that are attractive to buyers because of their abundant new housing aren’t necessarily as favorable for investors.

Methodology & Data Sources

To create our analysis, we primarily used data from the Building Permits Survey (BPS) from the United States Census Bureau. This survey provides national, state, and local statistics on permits authorized for new housing units. We used the annual data from 2024, as it’s the last year for which there’s a complete dataset.

Next, to calculate per-capita new housing construction, we relied on population information from the Census Bureau’s dataset “State Population Totals and Components of Change: 2020-2024.

Conclusion: The Future of New Home Building

Texas, Florida, and California lead the country in new authorized residential building permits, while Idaho, North Carolina, and South Carolina have the highest number per 1,000 residents. These numbers largely reflect migration patterns within the United States in the past decade. 

Those states with the highest per-capita new builds are also some of the states welcoming the most new residents. Of course, plenty of other factors are at play, from the local labor supply, quality of infrastructure, growth of job opportunities and wages, building regulations, and more.

But these numbers, like other similar statistics, aren’t likely to remain stagnant. Demographic tailwinds, potential policy reforms, and builder sentiment, among other factors, could all affect new building trends in the decade to come.

If you’re considering buying a home, especially a new build, our advisors can help you understand your financial readiness, set a reasonable goal based on your local housing market, and fit homebuying into your comprehensive financial plan. Schedule a free consultation today to learn more.

FAQs: New Construction by State

Which U.S. state has the most new construction housing right now?

Texas currently has the most new construction housing by a wide margin. However, when you account for the local population, Idaho has the highest per-capita new construction housing.

What region is building homes the fastest?

The South is building homes at a faster rate than the rest of the country combined, largely due to the inclusion of Texas. 

How do permits, starts, and completions differ—and which should I trust?

Permitting data simply refers to the number of new home permits authorized, not the number of homes started or completed. While it may be the least accurate in terms of actual new housing units available, it’s also the most available data, so it’s what we’ve used in our analysis.

Is new construction cheaper than existing homes in high-growth states?

Whether new construction or existing homes tend to be more affordable differs from state to state and, more accurately, from city to city. 

For example, even within Texas, Austin and Dallas have more affordable new housing than existing housing, based on price per square foot. But in Houston, we see the opposite trend. 

Generally speaking, though, cities in states that rank high for new housing construction tend to have more affordable new housing than existing housing.

How will interest rates impact new construction in the next year?

If interest rates decline, as many experts expect they will, more homebuyers may turn to new construction. More people may be able to afford the cost of new homes. That said, falling rates could also cause both existing and new home construction prices to rise as demand increases.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

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