With the United States facing a housing shortfall estimated at nearly four million homes, new construction has emerged as a critical source of supply, according to a report released Wednesday by Realtor.com.
The analysis identified 10 metropolitan areas where new construction is helping to ease affordability constraints and expand access to housing. Rankings were based on the share of new-home listings, pricing compared with existing homes, relative climate risks, and buyer demand.
The top markets were Fayetteville-Springdale-Rogers, Ark.; Boise, Idaho; Nashville-Davidson–Murfreesboro–Franklin, Tenn.; McAllen-Edinburg-Mission, Texas; Portland-South Portland, Maine; Madison, Wis.; Greenville-Anderson-Greer, S.C.; Austin-Round Rock-San Marcos, Texas; Charlotte-Concord-Gastonia, straddling North Carolina and South Carolina; and Raleigh-Cary, N.C.
In Fayetteville, the top-ranked market, new homes accounted for more than 40 percent of listings, with a median price of $399,717, lower than the $418,375 median for existing homes. Boise led the nation in the share of new construction, with 51 percent of all listings, and recorded lower median prices for new properties compared with existing ones.
Danielle Hale, Realtor.com’s chief economist, said in a statement that these metros are offering “much-needed inventory at price points that reflect local demand.” She noted that in four of the top 10 markets, new homes were priced at or below existing homes.
Southern cities dominated the list, including Nashville, Austin and McAllen, where population growth and employment expansion have fueled demand. But the report also highlighted midsize cities in other regions, including Madison, Wis., in the Midwest and Portland, Maine, in the Northeast.
Joel Berner, a senior economist at Realtor.com, said the convergence of job growth, builder investment and affordability was creating opportunity in these markets. “When communities reduce zoning barriers and support sustainable building practices, it’s a win for affordability, livability and long-term resilience,” he said.
Industry officials emphasized the role of public policy in addressing the national shortage. Buddy Hughes, chairman of the National Association of Home Builders, said governments at all levels needed to “eliminate burdensome regulations, promote careers in the skilled trades and alleviate permitting roadblocks” to expand housing supply.
The report also ties into Realtor.com’s Let America Build initiative, a campaign advocating for zoning reform, streamlined permitting and regulatory modernization. The initiative recently received bipartisan backing from the U.S. Conference of Mayors.
