California, Florida, and Texas are the top three housing markets in the nation, with over 100,000 building permits issued in each state in 2017. While Texas has the most new construction, California has the most need.
With the highest population and the most jobs per new home community, California has a lot to offer new construction. Yet, a variety of costly factors hamper such projects, according to John Burns Real Estate Consulting's principal Pete Reeb. Zoning, fees, and environmental compliance all make building new communities a lengthier and costlier process than in Texas and Florida.
California builders have become the leaders in providing high-density housing solutions, selling new homes at the most attainable prices possible that also allow for a reasonable builder profit margin. California developers and builders have been the first to innovate many new home and community design features such as: Pocket parks, courtyard / green court homes, “California rooms” (integrating indoor and outdoor living), staggered garages, and roof decks on single-family homes.