T
he real estate market saw a significant boost in 2024, with 1.02 million new single-family homes entering the market, a notable increase from 998,900 in 2023. According to Realtor.com data, for-sale inventory has returned to pre-pandemic levels in the South and West, thanks largely to an influx of new construction listings.

    The South is the largest regional market for new construction, with 23% of listings being newly built homes, while the average existing home on the market is a staggering 39 years old. In contrast, the West has 14.4% of its market comprised of new-construction homes, with an average age of 40 years for existing homes.

    The median listing price for new builds across the country was $449,967 in Q4 2024, a 0.7% annual drop. Builders are focusing on smaller, more affordable homes to address the supply gap in the market. Experts attribute the surge in new construction in the South and West to economic growth, migration patterns, and favorable business environments.

    Austin Hair, founder of Eperon Capital, notes that states like Texas, Florida, and Georgia have become attractive destinations due to lower taxes, more affordable housing, and a lower cost of living compared to the Northeast. Mark Lumpkin, founder of STR Cribs, adds that improved economic conditions and fewer regulatory barriers in these regions have drawn developers seeking lower land costs and easier permitting processes.

    As a result, new properties are entering the market at an unprecedented rate, driven by the opportunity for developers to build with fewer regulations. This trend is expected to continue, shaping the housing markets of the South and West in the years to come.