According to Zillow home sale data, average home prices have spiked more than 49% since 2019. However, we’ve seen an uptick in new home constructions in 2024 in many cities. This should offer some relief to outpriced consumers. New builds alleviate undersupplied metros, reduce housing costs, and provide attractive incentives for homebuyers, like:
- Closing cost assistance
- Upgraded and energy-efficient features
- Customization
- Discounted prices
For investors, new build projects create new and profitable opportunities. While initiatives to build brand-new homes are emerging throughout the country, experienced investors understand a steady economic climate and population growth are essential to a location and property’s success.
So, where is construction booming in 2024, and what locations offer the allure and opportunity for both homebuyers and entrepreneurs?
Leveraging industry trends with market research, CIVIC has uncovered the best places to build a house in 2024! Below, we’ll break down each of the top new construction cities and why they’re so popular:
Houston, Texas
Texas dominates new residential home constructions by state, with four metros in the top 10 and Houston leading the way. In 2023, Houston was named the top city for new home construction, averaging nearly 6,000 new build permits each month. With 1,751 new home constructions sold in March of 2024 alone, Houston continues to build and sell homes at a stellar rate.
What makes Houston such an attractive location? For starters, Houston–the fourth largest city in the US–maintains a solid, diverse, and growing economy through its energy, aerospace, technology, and healthcare industries. That strong job market fuels its ongoing population growth, with more families and young professionals permeating the city each year.
For consumers, Houston remains one of the most affordable places to live, with median home sales prices 23% lower and the overall cost of living 6% lower than the national average. A strong economy, continued growth, and ongoing new home construction in 2024 make Houston one of the best places to build a house in 2024.
Houston By The Numbers
- Number of New Residential Construction Permits in Q1 2024: 8,882
- Average Cost of a New Build: $263,147
- New Construction Median Sale Price: $347,990
- Job Growth: 1.60%
- Population Growth: 1.42%
Atlanta, Georgia
Many of the residential new builds in Atlanta are strategically located within planned communities. These communities provide countless amenities for families and young professionals, including swimming pools, recreational facilities, parks, and clubhouses. While home prices are generally more expensive, with the average home selling for $370,260, homebuyers buy into a flourishing real estate market with a 4.8% year-over-year (YoY) median price appreciation.
For investors, Atlanta’s metro area saw a 39% increase in new residential construction in the first quarter of 2024–with 4,985 new permits issued between January and March. Since the cost to build a new home is just over $280,000 on average, the city is primed for new home constructions and opportunities in 2024.
Atlanta By The Numbers
- Number of New Residential Construction Permits in Q1 2024: 4,985
- Average Cost of a New Build: $283,415
- New Construction Median Sale Price: $379,900
- Job Growth: 1.20%
- Population Growth: 1.46%
Dallas, Texas
PwC’s single-family rental market reports rank Dallas third in overall real estate prospects and fifth in new home construction prospects in 2024. The city has gone from an oil town to a diverse and growing economic market. With the addition of booming industries including technology, finance, healthcare, and the continuation of the oil and gas sectors, affordable housing, and rapid population growth, Dallas has quickly become a real estate investor’s dream–and one of the best places to build a house in 2024.
The city has witnessed a 59% YoY increase in residential construction permits, 6,131 in Q1 of 2024, totaling over $600 million in new residential constructions in and around the city’s metropolitan area. With ongoing and growing demand, the average single-family new build sells for nearly $423,000.
Dallas By The Numbers
- Number of New Residential Construction Permits in Q1 2024: 6,131
- Average Cost of a New Build: $306,877
- New Construction Median Sale Price: $422,867
- Job Growth: 1.90%
- Population Growth: 1.33%
Phoenix, Arizona
The city of Phoenix issued 10,688 new home constructions in 2024’s first quarter. With the median sale price of new constructions over $450,000, and the cost to construct a home just under $300,000, investors are quickly salivating over the desert heat and real estate potential in Phoenix.
What makes Phoenix so attractive to consumers? For starters, the city is a short drive from natural beauty and outdoor recreation. From desert and mountain hikes to sandboarding and ATV excursions, Phoenix offers residents the natural allures many metropolitans cannot. The city also offers a growing job market, great school districts, and a safe and welcoming community for families. In addition, with YoY home appreciation at 3.6%, homebuyers can take solace in their rising home’s value, which grows faster than those in other popular cities.
Phoenix By The Numbers
- Number of New Residential Construction Permits in Q1 2024: 10,688
- Average Cost of a New Build: $295,580
- New Construction Median Sale Price: $453,500
- Job Growth: 2.30%
- Population Growth: 1.39%
While the uptick in new home construction in 2024 is to remedy skyrocketing home prices, it creates a bevy of possibilities for investors. Metros with bustling job markets and steady growth attract a more diverse and saturated consumer market and are the best places to build houses. For investors, business success hinges on your ability to identify these lucrative locations and access adequate capital to fund new build projects.
ClVIC: A Decade of Reliability & Strength for New Build Financing
CIVIC’s Ground-Up Construction financing for new builds offers:
- Up to 75% LTC
- Up to 100% construction costs
- $3.5 million max financing
- 1-4 non-owner occupied unit residential, townhome, and condo eligibility
Our team of knowledgeable industry experts has the insights, tools, and capital to help you identify the best places to build a house and act! CLICK HERE to schedule a FREE consultation with a CIVIC expert today!
