Surprising leaders emerge in new construction
The US is short nearly 4 million homes, and new construction is becoming essential to ease the shortage. A report released Wednesday by Realtor.com identified the metros offering the strongest mix of affordability, availability, and climate-conscious building.
The analysis reviewed the 100 largest US metros based on four factors: the share of new homes in listings, the price premium of new versus existing homes, climate risk differences, and buyer demand measured by listing views and market time.
Topping the list was Fayetteville-Springdale-Rogers, Ark., where new homes make up more than 40% of listings and are priced below existing properties. The median newly built home lists for $399,717, compared with $418,375 for older homes. “Our top metros for new construction are places where builders are delivering much-needed inventory at price points that reflect local demand,” said Danielle Hale, chief economist at Realtor.com.
Boise, Idaho, ranked second and stood out as the only Western metro in the top 10, with new homes accounting for over half of listings and selling for less than existing ones. Boise also scored highly for sustainability, with new properties carrying lower wildfire risks. Nashville, Tenn.; McAllen, Texas; and Portland, Maine rounded out the top five.
“With nearly half of the for-sale homes in some of these metros being new construction, and often being sold at or below the cost of existing homes, buyers in these areas have a real chance to find homeownership with high-quality, newly built homes at prices they can afford,” Hale said.
Southern and midsize markets dominate the rankings, reflecting where demand and affordability intersect. Austin, Texas; Greenville, S.C.; Charlotte, N.C.; Raleigh, N.C.; and Madison, Wisc. also made the top 10.
Joel Berner, senior economist at Realtor.com, said local conditions play a key role. “When communities reduce zoning barriers and support sustainable building practices, it’s a win for affordability, livability, and long-term resilience,” he said.
Buddy Hughes, chairman of the National Association of Home Builders, added that policy change remains vital. “We need to enact policies at all levels of government that will eliminate burdensome regulations, promote careers in the skilled trades and alleviate permitting roadblocks,” he said.
The rankings are part of Realtor.com’s Let America Build initiative, which advocates for reforms to expand new housing supply nationwide.
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