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New Home Construction Slumps in U.S., Particularly in Sun Belt Cities
Confirmed
In Short: New home construction is losing momentum across the United States, with significant declines in Sun Belt cities that drove the pandemic-era building boom, according to reports.
New home construction is losing momentum across the United States, with some of the steepest declines concentrated in Sun Belt cities that helped drive the country's pandemic-era building boom, according to Newsweek.
Builders continue to face significant challenges from elevated construction costs and affordability pressures, according to Bill Owens, chairman of the National Association of Home Builders.
Permitting gains are occurring mostly on the coasts and in the Midwest, where construction had been more subdued during the boom of the past several years, according to Newsweek.
Builders are completing homes more quickly as the pandemic-era backlog clears, while also favoring smaller homes as buyers contend with stretched affordability, according to Newsweek.
What's confirmed
- New home construction is losing momentum across the United States, with some of the steepest declines concentrated in Sun Belt cities that helped drive the country's pandemic-era building boom, according to Newsweek.
- Builders continue to face significant challenges from elevated construction costs and affordability pressures, according to Bill Owens, chairman of the National Association of Home Builders.
- Permitting gains are occurring mostly on the coasts and in the Midwest, where construction had been more subdued during the boom of the past several years, according to Newsweek.
- Builders are completing homes more quickly as the pandemic-era backlog clears, while also favoring smaller homes as buyers contend with stretched affordability, according to Newsweek.
What's still developing
- At the same time, newly completed homes are getting smaller.
- Still, the overall number of new detached single-family homes being completed is falling.
- In March 2026, President Donald Trump signed an executive order directing federal agencies to reduce regulatory barriers that the administration says are making home construction more expensive and slowing development.
- The administration said the changes were intended to lower construction costs, increase the supply of homes and make housing more affordable.
- The number of homes available for sale has improved modestly during Trump’s first year back in office, but that does not necessarily mean the country is building enough new homes to address its longer-term housing shortage.
- In September, officials cut daily transits from 36 to 32 because of the drought.