The U.S. Cities Leading the New Home Boom

Core Insights - The U.S. is experiencing a housing shortage of nearly 4 million homes, making new residential construction essential for restoring affordability and expanding homeownership access [1] - Realtor.com® has identified the top metropolitan areas for new construction based on availability, affordability, sustainability, and demand for newly built homes [2][3] Summary by Sections New Construction Hotspots - The analysis covered the 100 largest U.S. metropolitan areas, focusing on new-home share of listings, price premiums over existing homes, climate risk differences, and buyer demand [2] - The top 10 metros for new construction include Fayetteville, Boise, Nashville, McAllen, and others, where builders are meeting local buyer needs effectively [2][7] Market Dynamics - In Fayetteville, newly built homes constitute over 40% of listings and are priced below existing homes, with a median price of $399,717 compared to $418,375 for existing homes [4] - Boise leads in new construction listings at over 51%, with a median listing price of $540,743, which is lower than existing homes priced at $559,517 [5] - Newly built homes in these metros often feature modern designs and energy efficiency, with lower risks for natural hazards compared to older homes [3] Regional Trends - The report highlights that while the South dominates the list, other regions like the Midwest and Northeast are also represented, indicating a nationwide trend [8] - Many top metros are midsize cities or college towns with low living costs, attracting new residents and investments [8] Policy and Advocacy - The report emphasizes the need for local, state, and federal governments to enact policies that reduce regulatory burdens and promote affordable housing construction [9] - The Realtor.com® "Let America Build" initiative aims to break down barriers to new home construction and has gained support from the U.S. Conference of Mayors [10] Ranking Criteria - The ranking criteria for the top metros include new construction share of listings, price premiums, climate risk scores, and market demand metrics [12][13]