Texas is leading the nation in single-family home construction, with the Houston and Dallas-Fort Worth (D-FW) metro areas topping the charts, according to a recent ConsumerAffairs report analyzing permit issuance and new home sales from January and February 2025.

Houston, recognized as the only major U.S. city without traditional zoning restrictions, issued 11,047 new building permits and saw 1,314 new home sales across its metro area during the first two months of the year. This regulatory environment has clearly given Houston a competitive edge, helping it secure the No. 1 spot nationally.

The D-FW metro area claimed the No. 2 ranking overall, although Dallas proper accounted for a small fraction of permits issued. City of Dallas data reveals only 315 single-family permits were issued in January and February, representing just 3.21% of the metro’s total 9,811 permits, while 741 new homes were sold in the city.

Builders in Dallas have long faced challenges from limited land availability, permitting inefficiencies, and restrictive zoning, but the city’s relatively low share of permits largely reflects the explosive growth in surrounding suburbs. “Growth trajectories in North Texas are plain as day,” said industry observers, noting population surges in counties like Kaufman (26.7%), Rockwall (25%), and Parker (19.4%) from 2020 to 2024, far outpacing Dallas County’s modest increases.

Efforts are underway to improve Dallas’ permitting process. The city’s Planning & Development Department recently launched DallasNow, an online platform aimed at streamlining applications and enhancing customer experience. Furthermore, state lawmakers are considering Senate Bill 15, which would eliminate minimum lot size restrictions over 1,400 square feet for new subdivisions in cities with populations exceeding 150,000 located in counties with more than 300,000 residents. If passed, this legislation could ease land constraints and boost single-family home construction in Dallas.

Two other Texas metros, San Antonio and Austin, ranked No. 8 and No. 9 nationally, respectively. San Antonio recorded 2,013 permits and 748 new homes sold, while Austin logged 3,889 permits and 520 home sales.

Florida was the only other state with multiple metro areas in the top 10, with Orlando at No. 7 and Tampa at No. 10.

ConsumerAffairs derived its rankings by equally weighting two key metrics: permits issued and home sales. Each metro’s performance in these categories was scored out of 50 points and combined for an overall score out of 100.

Industry Context and Outlook

The robust single-family construction activity in Texas comes amid a broader national backdrop of evolving housing demands and market shifts. Experts point to Texas’ combination of regulatory flexibility, abundant land, and strong economic growth as key drivers behind its success.

“Houston’s lack of zoning regulations means fewer hurdles for builders, accelerating development timelines,” said a market analyst. “Meanwhile, the rapid suburban growth around Dallas reflects changing lifestyle preferences, with more people seeking affordable housing outside urban cores.”

However, the state’s booming construction is not without challenges. Supply chain disruptions, labor shortages, and rising materials costs continue to test developers and contractors alike. Industry stakeholders emphasize that sustaining this momentum will require ongoing policy support, infrastructure investments, and workforce development.

As Texas maintains its leadership in single-family housing starts, close attention will be paid to how legislative measures like Senate Bill 15 influence urban development patterns, affordability, and housing availability in the coming years.

Originally reported by Charles Grand in Candysdirt.