Where Are the Most New Homes Being Built?

The housing market continues to grapple with an ongoing shortage of homes. In 2024, around 1.5 million new housing units were approved. However, that figure still wasn’t enough to close the current housing supply gap, which is currently estimated to be between of 2.5 and 5.5 million homes, according to Construction Coverage.

Even so, some parts of the U.S. are seeing an increase in construction activity. Idaho currently leads the nation in new housing activity, approving 21.2 units per every 1,000 existing homes—more than double the national rate of 10.1 housing units per every 1,000 existing homes. Other states in the South and Mountain West are closely behind. For instance, North Carolina is approving 18.8 housing units per every 1,000 existing homes, followed by South Carolina and Utah, both of which are approving 18.6 units per every 1,000 existing homes.

Among the nation’s largest metros, the Raleigh-Cary area in North Carolina ranked first with 28.8 new units per 1,000 existing homes, followed by Austin (28.6) and Dallas-Fort Worth (22.2). Despite recent slowdowns, many of these regions remain among the nation’s top markets for new housing development, reflecting ongoing demand and more favorable building conditions.