As the U.S. continues to grapple with a shortage of an estimated 4 million housing units, a few homebuilders are rising to the challenge and producing new homes at a rapid pace to meet rising demand.
A new report from Realtor.com® identifies the top 10 cities that offer homebuyers the best mix of new construction inventory, affordability and sustainability.
When assessed across the country’s 100 most populous metro areas, these premier new construction boomtowns are evaluated and ranked based on four factors: new home share of listings, new construction premiums over existing homes, climate risk differentials, and buyer demand for new construction based on page views per listing and average time on market.
The South dominates overwhelmingly, claiming eight of the ten spots – including six in the Carolinas alone. This should come as no surprise, considering South Carolina and North Carolina earned grades of A and B+, respectively, on the 2026 Realtor.com Housing Report Card due to their exceptional homebuilding momentum.
Charleston, SC ranked first, followed by Greenville, SC, Boise City, ID, Charlotte, NC, Nashville, TN, Chattanooga, TN, Winston-Salem, NC, Madison, WI, Durham, NC and Columbia, SC.
“This year’s highly concentrated selection of featured markets shows that new home owners and have-nots are driven primarily by local building conditions,” says Realtor.com’s senior economist Joel Berner. “Land is more readily available and less expensive in the South than in other regions, and more generous zoning and less restrictive building codes tend to make building in the South more builder-friendly.”
Remarkably, almost every metropolis that is a leader in new construction has a major research university or flagship school that shapes the local economy and drives demand.
Even if buyers fear that choosing a new building will automatically cost them more than a used home, that is not necessarily true.
In four of the top 10 metro areas highlighted in the Realtor.com report, the price of a typical new home is actually high below the median list price for existing homes.
Although new construction has higher base prices, keep in mind that developers often offer aggressive incentives, including closing cost credits, price discounts and multi-year warranties for cosmetic repairs, mechanical systems and structural elements.
Additionally, new homes typically require less maintenance in the first few years and tend to be more energy efficient, resulting in lower utility bills.
Charleston, the champion of new construction
Charleston, this year’s top hub for new construction, has a large supply of affordable new construction, accounting for nearly a quarter of the metropolis’ total active inventory.
While existing homes in Charleston are well above the national average price at $504,832, the average price for newly built homes is significantly cheaper at $443,273. This represents a discount of 12.2% – the largest price difference among the top 10 cities.
A picturesque seaside town with horse-drawn carriages and impressive antebellum architecture, Charleston is home to several colleges and universities, including the Medical University of South Carolina, one of the metro area’s major employers.
Charleston’s diverse employment base includes defense installations, Boeing-led aerospace manufacturers and automobile factories that drive the local economy.
“The metro area’s strong middle class means continued demand for affordable homes, and developers in Charleston have delivered numerous new homes at competitive prices,” Berner says.
Ready for something new?
Greenville’s urban vision and suburban expansion
Located on the opposite side of South Carolina, Greenville scored in the top 10% of markets for new home inventory and prices, helping the metro area achieve silver.
New construction makes up more than a third of Greenville’s housing stock, and the typical new home costs just $364,493, slightly below the average price of existing homes.
As a manufacturing and logistics giant, Greenville attracts newcomers looking for high-quality, well-paying jobs, resulting in built-in housing demand.
Brian Hurryan agent with the Hurry Home team at Coldwell Banker Caine, says entry-level buyers are drawn to new homes because the metro area’s relative affordability allows them to secure brand-new homes with modern amenities while benefiting from building concessions.
“You’ll have things built into the home and designed today, like your larger kitchen, your pantry, a large island, your improved master bath and bedroom, energy efficient in every way,” Hurry tells Realtor.com. “They will consider outdoor living spaces, modern floor plans and storage.”
According to Hurry, the real catalyst for Greenville’s success was the redevelopment and revitalization of the downtown area.
“They fundamentally built, structured and planned the city center not around cars but around pedestrians,” he says. “And whenever you do a master plan for an entire downtown like that, you now have street-level restaurants, art and a lot of community-style things.”
Other top attractions include Greenville’s thriving dining scene, outdoor amenities like the famous Swamp Rabbit Trail, and mild year-round weather.
Developers have noticed this and invested in new buildings to take advantage of the influx of movers.
“You can build a nicer product here, brand new, but no more expensive than what people are willing to pay,” the agent explains.
While Greenville continues to see a lot of new construction near the city’s core, southern suburbs like Fountain Inn and Piedmont are seeing the highest volume of new construction. Hurry attributes this to the availability of cheaper raw land and the convenience of commuters to the city center.
“The original land acquisition was affordable enough that they were able to build good options while still making a profit from the developer’s perspective,” he says.
Incentive-driven Nashville
Nashville, the second largest metropolis in the top 10, is more than just a “music city”: It’s a bustling employment center anchored in healthcare, technology, automotive manufacturing and finance.
Both local buyers and out-of-market transplants flocking to Nashville from Los Angeles and New York City can choose from an ever-expanding selection of new construction at competitive prices.
Newly constructed homes make up 30% of listings in Nashville and command a modest 5.1% price premium over existing homes.
“Nashville has become a very buyer-friendly market, and developers are competing aggressively for a smaller pool of buyers.” Zach Copelanda real estate agent with Compass Nashville, tells Realtor.com. “While buyers may not necessarily be more likely to purchase new construction overall, the incentives can make a new home surprisingly competitive compared to a resale property.”
Copeland points to a short-lived surge in new construction contracts this spring as evidence of how quickly buyers can respond when developers offer them financial concessions.
“Builders can offer buybacks at mortgage rates, assistance with closing costs and other incentives that an individual seller may not want or be able to offer,” he says. “This is hugely important when buyers are focused on both monthly payments and purchase price.”
Beyond the obvious financing benefits, Copeland points out that buyers tend to get more space in new homes, especially in Nashville.
The Greater Nashville Realtors® reported earlier this year that newly constructed homes had an average area of 2,209 square feet, compared to 1,992 square feet for existing homes.
Housing construction in Nashville is most active in the nearest suburbs, Gallatin and Mount Juliet, where Copeland said purchasing land is still affordable for developers and local schools command high ratings.
“Although these two communities are not part of Nashville, they still allow residents access to everything Nashville has to offer within a 30-minute drive,” he says.
However, the increasing number of new buildings poses challenges for one particular group: resellers with aging properties.
“The current Nashville market penalizes sellers who overprice and under-improve, while it is very rewarding for sellers who price reasonably and have a top-notch home,” he says. “The top homes will not be affected by new construction. But the homes that are overpriced and below market standards will be most affected by new construction.”
