Texas Leads. Everyone Else Is Trying to Keep Up.
When you look at where residential construction is actually happening in 2026, the data tells a clear story: a handful of states are absorbing the vast majority of building permits, housing starts, and crew hours. According to Census Bureau building permit data, Texas issued approximately 248,000 residential building permits in 2025 (the most recent full-year data available), more than double the next closest state. That is not a new development — Texas has led the nation in permits for over a decade — but the gap is widening.
Here is the deal: if you are a builder or subcontractor and you are not paying attention to where the permits are being pulled, you are making decisions blind. Migration patterns, job growth, land availability, and regulatory environments all determine where crews stay busy. Let me walk through the top 10 states, with the data behind each one.
1. Texas — 248,000 Permits
Texas is the undisputed king of residential construction. According to Census Bureau data, the state issued 248,000 total residential building permits in 2025, including approximately 168,000 single-family and 80,000 multifamily units. The Dallas-Fort Worth metroplex alone accounted for roughly 72,000 permits, followed by Houston at 64,000, Austin at 38,000, and San Antonio at 31,000.
What drives Texas construction? Population growth is the primary engine. According to the Texas Demographic Center, the state added 471,000 net new residents in 2025, driven by domestic migration from California, Illinois, and New York, plus international immigration. The Texas economy added 384,000 jobs in 2025, according to the Bureau of Labor Statistics, with strong gains in technology, healthcare, energy, and logistics.
Texas also benefits from relatively low regulatory barriers. According to the Wharton Residential Land Use Regulatory Index, Texas metros rank among the least regulated in the nation. Permitting timelines average 45 to 60 days for single-family homes in most Texas jurisdictions, compared to 120 to 180 days in California. No state income tax is an additional draw for both residents and builders.
2. Florida — 198,000 Permits
Florida claimed the number two spot with 198,000 residential building permits in 2025, according to Census Bureau data. Single-family permits totaled approximately 128,000, while multifamily came in at 70,000. The state is construction activity is concentrated in Central Florida (Orlando at 34,000 permits), Southeast Florida (Miami-Dade/Broward/Palm Beach at 42,000 combined), and the Tampa Bay corridor at 28,000.
Florida added an estimated 365,000 net new residents in 2025, according to the U.S. Census Bureau population estimates. The state is zero income tax policy, warm climate, and relatively affordable housing compared to the Northeast continue to attract retirees, remote workers, and young families.
The insurance crisis remains a headwind. According to the Insurance Information Institute, the average annual homeowners insurance premium in Florida hit $6,000 in 2025, more than triple the national average of $1,900. That cost is baked into builder pricing and affects affordability in coastal markets. Despite this, permit activity remains robust due to sheer demand volume.
3. North Carolina — 112,000 Permits
North Carolina has emerged as one of the fastest-growing construction markets in the Southeast. The state issued 112,000 residential building permits in 2025, according to Census Bureau data, with 78,000 single-family and 34,000 multifamily units. Charlotte led with approximately 36,000 permits, followed by Raleigh-Durham at 32,000.
According to the U.S. Census Bureau, North Carolina gained 189,000 net new residents in 2025, making it the third-fastest-growing state by net migration. The Research Triangle is tech economy and Charlotte is financial sector are drawing workers from higher-cost markets. According to Zillow, the median home value in Charlotte was $362,000 in March 2026, compared to $740,000 in the Washington D.C. metro area — that price differential drives migration and construction demand.
4. California — 108,000 Permits
California is a study in contradictions. Despite being the most populous state, it ranks fourth in permits with 108,000 in 2025, according to Census Bureau data. The state is high land costs, extensive environmental review requirements, and lengthy permitting processes — averaging 180 to 240 days for single-family permits in many jurisdictions, according to the Terner Center for Housing Innovation at UC Berkeley — suppress construction activity relative to demand.
Single-family permits totaled just 46,000, while multifamily made up the majority at 62,000. The state is housing shortage is estimated at 2.5 million units, according to the California Department of Housing and Community Development, but regulatory reform has been slow. Recent legislation including SB 9 (lot splitting) and SB 35 (streamlined approval for affordable housing) has had modest impact, adding an estimated 8,000 to 12,000 units to the pipeline annually.
The Los Angeles metro issued approximately 32,000 permits, the Bay Area contributed 22,000, and the Inland Empire produced 18,000. Sacramento has been a bright spot with 14,000 permits, driven by relative affordability and state government employment.
5. Arizona — 72,000 Permits
Arizona issued 72,000 residential building permits in 2025, according to Census Bureau data, with Phoenix accounting for roughly 58,000 of that total. The state gained an estimated 142,000 net new residents in 2025, according to Census population estimates, continuing its role as a primary destination for California transplants.
Single-family permits totaled 48,000 while multifamily came in at 24,000. The multifamily number is down sharply from the 2022 peak of 38,000, reflecting the apartment oversupply discussed in the current vacancy environment. According to the Arizona Commerce Authority, the state attracted $14.2 billion in new manufacturing investment in 2024-2025, including semiconductor fabrication facilities from TSMC and Intel that are creating thousands of high-paying jobs and driving housing demand.
Water availability remains a long-term concern. According to the Arizona Department of Water Resources, the state certified sufficient 100-year water supply for new development in most Phoenix-area communities, but some outlying areas face restrictions that limit subdivision approvals.
6. Georgia — 68,000 Permits
Georgia issued 68,000 residential building permits in 2025, with the Atlanta metro accounting for approximately 52,000, according to Census Bureau data. Single-family permits totaled 46,000, while multifamily contributed 22,000.
Atlanta is a major destination for domestic migration, gaining an estimated 98,000 net new residents in 2025 according to Census estimates. The metro is relative affordability — the median home value was $348,000 in March 2026 according to Zillow — combined with a deep job market in logistics, healthcare, film production, and technology continues to draw people from the Northeast and Midwest.
According to the Atlanta Regional Commission, the metro is population is projected to reach 7.2 million by 2030, up from 6.3 million in 2025. That growth trajectory supports sustained residential construction activity for years to come.
7. South Carolina — 58,000 Permits
South Carolina has been punching above its weight in construction. The state issued 58,000 residential building permits in 2025, according to Census Bureau data, remarkable for a state with just 5.4 million residents. Charleston led with approximately 16,000 permits, followed by Greenville-Spartanburg at 14,000 and Myrtle Beach at 12,000.
The state gained an estimated 87,000 net new residents in 2025, according to Census data. South Carolina is low cost of living, zero tax on Social Security income, and business-friendly environment attract both retirees and working-age migrants. According to the BLS, South Carolina is construction industry employed 118,000 workers in March 2026, up 6.2% year-over-year — one of the fastest growth rates in the nation.
8. Tennessee — 52,000 Permits
Tennessee issued 52,000 residential building permits in 2025, with Nashville accounting for about 24,000 and Memphis contributing 8,000, according to Census Bureau data. The state gained an estimated 78,000 net new residents in 2025.
Nashville is construction market has moderated from the frenzy of 2021-2023 but remains active. According to the Nashville Area Chamber of Commerce, the metro added 42,000 jobs in 2025, with healthcare (HCA Healthcare is headquarters), entertainment, and technology driving employment growth. The median home value in Nashville was $418,000 in March 2026, according to Zillow, keeping the market accessible compared to peer cities.
Single-family permits statewide totaled 36,000, while multifamily came in at 16,000. The multifamily segment in Nashville is experiencing the same oversupply correction seen across the Sun Belt, with vacancy rates climbing to 7.8% according to RealPage.
9. Colorado — 46,000 Permits
Colorado issued 46,000 residential building permits in 2025, with the Denver metro accounting for approximately 32,000, according to Census Bureau data. The state is construction activity is concentrated along the Front Range corridor from Fort Collins to Colorado Springs.
According to the Colorado Division of Housing, the state faces a housing deficit of approximately 175,000 units, making it one of the most supply-constrained markets in the Mountain West. Single-family permits totaled 26,000, while multifamily came in at 20,000. Construction costs are above the national average — the typical new home costs $385 per square foot in the Denver metro, according to RSMeans data, compared to the national average of $165.
Colorado gained an estimated 62,000 net new residents in 2025, according to Census population estimates. The state is outdoor lifestyle appeal, strong tech sector (Google, Amazon, and Oracle have significant Denver-area presences), and legalized cannabis industry continue to attract residents despite rising housing costs.
10. Washington — 44,000 Permits
Rounding out the top 10, Washington state issued 44,000 residential building permits in 2025, according to Census Bureau data. The Seattle metro accounted for roughly 28,000 permits, with the balance spread across the Puget Sound region and Central Washington.
Single-family permits totaled 24,000, while multifamily came in at 20,000. Washington is multifamily share is among the highest in the nation, reflecting the high land costs and density-oriented planning policies in the Seattle area. According to the Puget Sound Regional Council, King County added 38,000 housing units between 2023 and 2025, but the region still faces a deficit of approximately 82,000 units.
Microsoft, Amazon, Boeing, and a deep bench of technology companies anchor the Seattle economy. The metro gained an estimated 48,000 net new residents in 2025, according to Census estimates. Average construction wages in the Seattle area hit $38.20 per hour in March 2026, according to BLS data — among the highest in the nation — reflecting both the tight labor market and high cost of living.
The Common Thread: Migration Drives Construction
Across all 10 states, the pattern is the same: net domestic migration is the single strongest predictor of residential construction volume. According to the Census Bureau is Annual Population Estimates and American Community Survey data, the states gaining the most residents are the states issuing the most permits. The correlation is roughly 0.87, according to analysis by the Joint Center for Housing Studies at Harvard University.
The states losing the most residents — New York (net outflow of 262,000 in 2025), Illinois (net outflow of 141,000), and New Jersey (net outflow of 64,000) — have correspondingly lower construction activity relative to their populations. This pattern has been consistent since 2018 and shows no sign of reversing.
For crews looking to relocate or expand into new markets, follow the migration data. The Census Bureau publishes state-to-state migration flow estimates annually, and U-Haul and United Van Lines publish their own migration reports that provide metro-level detail.
Related Reading
Frequently Asked Questions
Which state has the most residential construction in 2026?
Texas leads the nation with approximately 248,000 residential building permits issued in 2025, according to Census Bureau data. Florida ranks second at 198,000, followed by North Carolina at 112,000, California at 108,000, and Arizona at 72,000. Texas has led the nation in residential permits for over a decade, driven by strong population growth, job creation, and a favorable regulatory environment.
What is driving residential construction in Sun Belt states?
Three primary factors drive Sun Belt construction: population growth from domestic migration, job creation in technology and healthcare sectors, and relatively lower regulatory barriers. According to Census Bureau data, Texas gained 471,000 net new residents in 2025, Florida gained 365,000, and North Carolina gained 189,000. These states also feature shorter permitting timelines (45-60 days versus 120-240 days in states like California) and lower land costs.
Where should construction contractors expand in 2026?
The strongest growth markets for residential contractors in 2026 are Dallas-Fort Worth, Houston, Orlando, Charlotte, Raleigh-Durham, Phoenix, and Atlanta, based on permit volume and population growth data from the Census Bureau. Contractors should consider markets where permit growth exceeds 5% year-over-year and where contractor backlogs remain above 4 months, indicating strong demand relative to available labor.
Your Action Item for This Week
Pick two markets from this list that are within a reasonable travel distance from your current base of operations. Pull the Census Bureau building permit data for those metros at census.gov/construction/bps. Compare the year-over-year permit growth to your current market. If those markets are growing faster and you have the crews to support expansion, start making calls to local suppliers and subcontractors. The work is concentrated in these 10 states for a reason — and if your state is not on this list, the work may be coming to you slower than you think.
