The 2025 “Top New Construction Metros” analysis from Realtor.com identifies the cities leading new construction development this year. These markets are at the forefront of home construction due to a perfect blend of high buyer interest and affordable housing options. The report provides essential market data for builders and agents about where to expand their supply and how to align with consumer preferences.
Key Takeaways From the Report
- Southern Cities Dominate: The list is heavily focused on Southern cities. A combination of job market expansion, affordable prices, and a desirable lifestyle makes Raleigh, Nashville, and Jacksonville stand out. These regions are attracting people who want to escape the high cost of living in coastal areas.
- Affordability Drives Demand: Demand for housing remains high because of affordable prices. New home construction in places like Boise and Madison offers buyers more affordable choices than existing homes in these expensive markets.
- New Homes Meet Buyer Needs: Today’s homebuyers are seeking properties with energy-efficient features, contemporary floor plans, and builder promotions. The new home market can now compete directly with resale properties by matching their pricing and features.
- New Opportunities for Agents: The rising number of available homes creates new opportunities for real estate agents. The large volume of new homes in Houston and Dallas gives agents more choices to find suitable properties for clients while expanding their business in new home sales.
Spotlight: Top 3 Builder-Friendly Markets
Rank #1: Fayetteville–Springdale–Rogers, AR
- 43.1% of listings are new builds.
- The area’s economic stability, driven by the presence of major companies like Walmart and Tyson Foods and the University of Arkansas, makes it an attractive location for both builders and agents.
Rank #2: Boise City, ID
- The cost of new homes ($540,000) is lower than existing homes ($559,000).
- The area has high climate resiliency scores, which indicate enduring property value.
Rank #3: Nashville-Davidsons-Murfreesboro-Franklin, TN
- The new construction market segment represents 37% of total listings.
- This is a “hot market,” with homes selling at a faster rate than typical markets (an average of 52 days on the market).
Why This Matters for Builders and Agents
For Builders:
- Focus on price advantage: Concentrate efforts on markets where new homes have the greatest price advantage over resale properties (e.g., Boise, Fayetteville, Austin).
- Emphasize sustainability: Market homes by promoting sustainability benefits and lower flood and fire risks in areas like Portland, Boise, and Madison.
- Target mid-sized cities: Focus on mid-sized cities that attract people leaving expensive larger cities in the surrounding area (e.g., Raleigh compared to D.C., and Charlotte compared to Atlanta).
For Agents:
- Highlight value: Market new construction properties as a superior value option compared to traditional resale homes.
- Leverage data: Use sustainability and risk assessment data to attract environmentally conscious homebuyers during sales pitches.
- Create urgency: In fast-paced markets like Nashville and Greenville, highlight the quick sales environment to create a sense of urgency among potential buyers.
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