Buyers are most likely to find newly-built homes in the South & Mountain West
Source: Construction Coverage analysis of Zillow data | Image Credit: Construction Coverage
Despite the recent decline in new construction sales nationally, prospective buyers looking for new homes can still find plenty of options in certain markets. Regions in the South and Mountain West dominate the list of areas where new construction accounts for a significant share of home sales. These regions have experienced steady population growth, ample land availability, and developer-friendly policies, leading to higher rates of homebuilding compared to other parts of the country.
In Jefferson, GA, new construction homes represent an impressive 57.8% of all home sales—the highest among metropolitan areas in this report. Similarly, Boise, ID (50.3%) also reports a majority of its sales coming from new construction. Other notable markets include Spartanburg, SC (47.8%), Ocala, FL (47.0%), and Provo, UT (43.4%), all of which boast percentages that are at least four times higher than the national average. While new construction prices are slightly above average in Jefferson and Spartanburg, they are roughly equivalent to market averages in Boise, Ocala, and Provo.
On the other hand, coastal metros and many areas in the Midwest show notably low levels of new construction sales activity. High land costs, restrictive zoning policies, and slower population growth have contributed to this trend. For instance, in major markets like San Diego and Miami, newly-built homes account for around 2% of total sales, among the lowest shares in the country. Similarly, Rust Belt cities such as Cleveland (2.5%) and Pittsburgh (2.2%) also rank at the bottom. These areas tend to have an older housing stock and face challenges like limited available land and less developer interest, making it harder for buyers to find recently built homes.
Generally, in markets with limited new construction supply, prices for newly built homes are often significantly higher than the local average. In Miami, for example, the cost of a new construction home is more than double the average price of all homes in the area, reflecting the scarcity and premium associated with new builds in these locations.
For buyers looking for affordable, new construction options, markets in the South and Mountain West stand out as the best options.