Texas cities are continuing to dominate the national housing construction landscape, according to a new report from ConsumerAffairs, which ranked metro areas based on new building permits and sales of newly constructed homes. Houston led the list, followed closely by Dallas, while San Antonio and Austin also secured spots in the top 10 — highlighting the state’s prominent role in addressing America’s persistent housing shortage.

Texas Takes the Lead

Houston and Dallas were ranked first and second respectively, based on data from the U.S. Census Bureau and Zillow that covers the first two months of 2025. In that short period, Houston issued 11,047 new building permits — the highest among 150 U.S. cities — while Dallas trailed closely with 9,811 permits. San Antonio and Austin ranked eighth and ninth, respectively.

Houston also recorded the highest number of new-construction home sales, with 1,314 properties sold in January and February alone. Dallas followed with 741 sales. The report notes that Dallas had the highest price tags among major Texas metros for new builds, with an average cost of about $450,000.

Notably, Houston stands out as the only major U.S. city without zoning laws, a factor often cited as contributing to its ability to rapidly expand housing stock and maintain relatively lower home prices compared to other large metros.

Sun Belt Dominance

Eight of the top 10 cities for new home construction are located in the Sun Belt, with New York City being the only outlier from outside that region. The other metros rounding out the top 10 include Phoenix, Atlanta, Charlotte, Orlando, and Tampa Bay.

The Sun Belt’s popularity stems from a combination of job growth, lower taxes, and relatively affordable land, which continues to attract developers and homebuyers alike. The trend reflects a broader migration and development pattern seen throughout the post-pandemic housing boom.

Housing Demand Still Outpaces Supply

Despite the uptick in permits and new sales, experts say the U.S. is still far from resolving its underlying housing shortage. The National Association of Home Builders estimates that the country is facing a structural deficit of at least 1.5 million housing units.

“What we have is a supply problem,” said John Hunt, chief analyst and principal at MarketNsight, a housing analytics firm. “The more we can build, the less upward pressure there is on price … (and) the more folks can afford a home.”

The report from ConsumerAffairs underscores the importance of sustained housing development, especially in high-growth regions like Texas, where population increases are fueling demand. The average cost of a new-construction home in the U.S. now approaches $485,000, placing additional pressure on affordability for many would-be homeowners.

A Closer Look at the Top Cities

Top 10 U.S. Cities for New Home Construction (Jan–Feb 2025):

1. Houston, Texas
2. Dallas, Texas
3. Phoenix, Arizona
4. Atlanta, Georgia
5. New York, New York
6. Charlotte, North Carolina
7. Orlando, Florida
8. San Antonio, Texas
9. Austin, Texas
10. Tampa Bay, Florida

With continued investment and pro-growth policies, these cities — particularly those in Texas — are expected to remain construction powerhouses as developers race to meet surging housing needs.

Originally reported by Adam Fullerton in Yahoo News.