Texas Metros Outpace Nation in New Home Construction

Despite challenges in the national housing market, Texas metros are setting the pace for new home construction and sales in 2025. A recent Consumer Affairs study, which used Zillow real estate data and U.S. Census Bureau building permits, revealed that Houston, Dallas, San Antonio, and Austin all rank among the nation’s top housing markets.

San Antonio earned national attention for doing the “heaviest lifting” to ease America’s housing shortage. The Alamo City issued 2,013 new building permits in the first two months of the year and sold 748 newly constructed homes, securing the No. 8 spot overall. Researchers pointed to its lower home prices—median sales hovering near $270,000—and affordable solar energy rates as major advantages.

“What we have is a supply problem,” said Chief Analyst and Principal at MarketNsight. “The more we can build, the less upward pressure there is on price. … (and) the more folks can afford a home.”

Houston led the nation with 11,047 building permits and more than 1,300 newly built home sales, while Dallas followed with 9,811 permits and 741 new homes sold. Austin ranked just behind San Antonio, with 520 newly built homes, but its higher median list price of $579,000 sets it apart as a more expensive market.

Experts say the numbers reflect long-term population shifts. “Population is the biggest driver for housing,” explained Danushka Nanayakkara-Skillington, Assistant Vice President for Forecasting and Analysis at the National Association of Home Builders. “So it fits that the Lone Star State, the second-most populous state in the U.S., is dominating the charts.”

Texas’ momentum in new housing construction also comes at a time when tariffs and economic uncertainty have slowed growth elsewhere. Yet affordability, job opportunities, and a steady inflow of new residents continue to fuel demand in the Lone Star State.

Scott Norman, CEO of the Texas Association of Builders, offered advice for prospective buyers looking at new builds: “Research the building company, get examples of their past work, and study the warranty carefully. Also, ask about builder incentives and consider a separate home warranty.”

With housing affordability at the center of national conversations, Texas’ dominance in new construction positions its cities as critical players in shaping the country’s housing market for years to come.

Originally reported by Melanie Salazar in My San Antonio.