Texas Leads the Way — With Austin Among the Top Cities for New-Construction Homes

Austin, Texas has been named one of the top 10 U.S. cities leading the way in new-home construction, according to a recent report by Consumer Affairs, which analyzed building activity in the first two months of 2025. The ranking reflects both the number of new residential building permits issued and the volume of new-construction homes sold across 150 major metro areas.

Austin ranked #9 overall, with 3,889 new building permits issued and 520 new-construction homes sold in January and February 2025—highlighting its continued role as one of the most active housing markets in the country.

Texas Leads, and Austin Stands Out

Texas dominated the report, claiming four spots in the top 10: Houston (#1), Dallas (#2), San Antonio (#8), and Austin (#9). This reinforces the Lone Star State’s leadership in tackling the nation’s ongoing housing shortage. According to data cited in the Consumer Affairs article, the U.S. is currently short by an estimated 3.7 million housing units, with cities like Austin working to close the gap through aggressive building strategies and innovative permitting systems.

What sets Austin apart is its tech-forward approach to construction management. In response to previous delays—where it took nearly a year to process building applications—the city launched an AI-powered permit review system. This automation helps accelerate development by flagging inconsistencies and expediting plan approvals, making Austin one of the first cities in the U.S. to embrace artificial intelligence in this way.

A Balanced Market for Builders and Buyers

Unlike many high-growth markets where prices have surged, Austin is seeing a shift toward stabilization. From 2023 to 2024, the city experienced a 3.5% drop in median rent, signaling relief for renters and hinting at increased supply. At the same time, Austin continues to attract buyers looking for new homes with modern amenities, energy efficiency, and smart-home integration—features often found in today’s new builds.

The average new-construction home in Austin is priced below what buyers might find in cities like New York or Phoenix, offering a relatively more affordable option in a vibrant urban market.

National Context: Where Austin Fits In

Here’s how Austin stacks up in Consumer Affairs' list of the Top 10 Cities for New-Home Construction (Jan–Feb 2025):

1. Houston, TX
   
   
2. Dallas, TX
   
   
3. Phoenix, AZ
   
   
4. Atlanta, GA
   
   
5. New York, NY
   
   
6. Charlotte, NC
   
   
7. Orlando, FL
   
   
8. San Antonio, TX
   
   
9. Austin, TX
   
   
10. Tampa, FL
    
    

The report emphasizes that population growth, affordability initiatives, and streamlined building regulations are key factors driving new-home construction in these cities—particularly in Texas.

Conclusion

As the national housing shortage continues, cities like Austin are taking bold steps to meet demand through smart policies, technological innovation, and sustained development. With a strong showing in both permits issued and new-home sales, Austin’s position in Consumer Affairs’ top 10 confirms its status as one of the country’s most promising real estate markets for 2025 and beyond.