New Home Construction 13% Higher Than Last Year

According to the latest data from the U.S. Census Bureau and HUD, the number of new homes under construction in July jumped 5.2% higher than the previous month and an impressive 12.9% higher than last year. Single-family home construction alone rose 2.8% month-over-month, giving buyers more options in today’s competitive real estate market.

This increase in new home construction is welcome news for home buyers—more inventory helps balance the housing market and creates better opportunities to find the right property. However, growth wasn’t equal across the country. Most gains occurred in the South, while the Midwest, Northeast, and West saw declines.

Experts say affordability challenges and market uncertainty play a role in this uneven growth. While construction starts rose, building permits—a key indicator of future housing supply—remained relatively flat in July.

📊 What this means for buyers: As more new homes hit the market, buyers may see improved affordability, more housing choices, and stronger negotiating power.

If you’re thinking about buying a home or exploring mortgage options, now is a great time to get pre-approved and position yourself ahead of the competition.