Texas had the most new home construction in 2024, accounting for 15% of housing permits in the U.S., according to a report from Realtor.com.
“The state has grown rapidly in the last several years as people from across the country and across the world have seen what Texas has to offer,” says Danielle Hale, chief economist, Realtor.com, in the report. “In the years since the COVID-19 pandemic, the Texas economy has boomed, especially in high-demand industries like technology, education, manufacturing and construction. Already-scarce housing inventory from years of under-building was flooded with cash offers, and listing prices and rents soared. Texas has responded by building more and smaller homes to meet demand, helping the market settle and housing inventory climb back to pre-pandemic levels ahead of the nationwide recovery.”
In 2024, more than 1 in 4 people shopping for homes in Texas were from out of state, according to Realtor.com’s data.
The two largest sources of immigration to Texas are international migration and relocation from California.
“The Texas economy is a model for other states,” says Damian Eales, CEO, Realtor.com. “Residents are attracted to Texas first and foremost for its affordable housing, followed by its favorable climate and abundant jobs. This has put Texas on a path to potentially become the largest state by the year 2045. Those are among the many reasons why at Realtor.com®, we’re proud to call Texas home, as hundreds of our employees already do.”
The median newly constructed home on the market in Texas was 2,073 square feet, down from 2,189 in 2020, a 5.3% decrease.
Over this time period, new homes in the U.S. at large have fallen from 2,112 square feet to 2,035 – a 3.6% reduction.
Texas is also leading the way in its push to build more affordable new homes. In the last two years, the share of new builds on the market priced under $350,000 has increased while the shares of new builds priced from $350,000 to $750,000 and from $750,000 to $2,000,000 have both fallen.
“America is facing a severe housing affordability crisis, fueled by a staggering shortfall of approximately 4 million homes,” Eales says. “Our Texas report is just the beginning of a series that will shine a light on the gaps in our housing supply. By showcasing solutions from states like Texas and calling attention to those that are falling behind, we can drive a national conversation that leads to real, meaningful change.”
Photo: Annie Gray
