Florida’s residential construction market continues to navigate a period of normalization in 2026. According to the latest HBW Building Activity Trend Report, a total of 77,096 new residential construction permits were added to the HBW database through the third quarter of 2026. While that figure represents a 4% year-to-date decline compared to the same period in 2025, context is important.
After all, Florida also recorded a 4% year-over-year decline in new home construction permits during 2025, suggesting that the current slowdown is less of a sudden contraction and more of a continuation of an existing market adjustment. In many ways, the state’s construction economy appears to be moving through a period of recalibration rather than retrenchment. While statewide activity is modestly lower, several regions and counties are outperforming expectations and bucking the broader trend.
It is important to remember that this report reflects activity through the third quarter of 2026 only. It should not be interpreted as a full-year forecast. However, with nine months of data already recorded, it provides a meaningful snapshot of where residential development has been strongest and where momentum may be building heading into the final quarter of the year.
Florida’s Leading Regions
When analyzing permit concentration across Florida, two regions clearly stand apart from the rest.
West Florida – West Florida remains the state’s largest source of new residential construction activity, accounting for 18,839 new residential construction permits through Q3 2026. While the figure reflects an 8% decline compared to the same period last year, the region continues to generate the highest permit volume of any area included in the report. Even amid softer market conditions, West Florida remains a major engine of residential development throughout the state.
Southwest Florida – Close behind is Southwest Florida, where 16,307 new residential construction permits have been recorded through the third quarter; this total represents a 6% year-to-date decrease versus 2025. That being stated, Southwest Florida remains fairly aligned with the statewide trend and continues to support a substantial share of Florida’s overall housing activity.
Northeast Florida – One of the more notable stories emerging from the 2026 data is the strength of Northeast Florida. Through Q3, 13,396 new residential construction permits have been added to the HBW database, reflecting a 5% year-to-date increase compared to the same period in 2025. At a time when statewide activity remains down, Northeast Florida has emerged as one of only three regions posting year-over-year gains. The region’s continued expansion suggests that demand fundamentals remain healthy and that builders have maintained confidence in several of its local markets.
Other Florida Regions
Central Florida – Central Florida recorded 10,693 new residential construction permits through the third quarter of 2026, reflecting a 15% year-over-year decline, making it one of the more challenged regions in the state so far this year. While activity levels remain significant from a volume perspective, the pace of new construction has clearly moderated compared to 2025.
Northwest Florida – If there is one region that deserves the title of “overachiever” through Q3 2026, it may be Northwest Florida. The region added 10,198 new residential construction permits through Q3, marking a 14% increase over the same period in 2025. Not only is Northwest Florida one of the few regions generating growth this year, it is also the region posting the most substantial increase. The data suggests that builders continue to find opportunities across the Florida Panhandle and neighboring markets.
Southeast Florida – Southeast Florida recorded 7,663 new residential construction permits through the third quarter, reflecting a 1% year-to-date increase compared to 2025. Admittedly, a 1% increase will not make anyone break out the champagne. However, in a market environment where statewide activity remains in decline, any positive growth is worth acknowledging. Despite posting the lowest permit volume among the major regions, Southeast Florida is nevertheless moving in the opposite direction of the broader statewide trend.
County-Level Leaders
While regional analysis tells part of the story, county-level data reveals where the greatest concentrations of residential construction are actually taking place. For this reason, here are a few counties worth noting:
Lee County – With 5,343 new residential construction permits, Lee County recorded the highest concentration of residential construction activity among counties included in the report. Although permit volume is down 25% year-over-year, the county continues to lead Florida in overall permit activity. Even with the decline, Lee County remains an important market that construction professionals cannot afford to overlook.
Manatee County – Also in Southwest Florida, Manatee County stands out for both volume and growth. The county recorded 4,368 new residential construction permits, representing a remarkable 24% increase over 2025. At a time when many jurisdictions are seeing declines, Manatee County’s performance demonstrates significant development momentum.
Polk and Pasco Counties – In West Florida, Polk County added 4,815 permits, though activity is down 14% from last year. Nearby Pasco County recorded 4,722 permits, reflecting a 13% decline versus 2025. While both counties are experiencing softer year-over-year comparisons, their absolute permit totals remain among the highest in Florida.
Marion County – One of the more encouraging patterns in this year’s report comes from Marion County. The county recorded 3,981 permits through Q3 2026, representing approximately a 1% decrease compared to the same period last year. Why is that noteworthy? Because Marion County experienced a substantial 23% annual decline during 2025. Relative stability in 2026 may suggest that the market has begun to find a floor after last year’s correction. While it is too early to declare a full recovery, the absence of further deterioration is certainly encouraging.
Duval County – In Northeast Florida, Duval County added 3,176 new residential construction permits, reflecting a 4% year-over-year increase. The county continues to support Northeast Florida’s broader growth narrative and remains one of the stronger-performing markets in the state.
Counties Defying the Statewide Decline
Several counties deserve special recognition for outperforming broader market conditions. While the full HBW Building Activity Trend Report provides in depth insights for all counties, the following are worth highlighting:
Orange County – Although Central Florida as a region is down significantly, Orange County appears to be charting its own course. Through Q3 2026, the county recorded 2,583 new residential construction permits, representing a 3% increase compared to 2025. The growth may indicate that demand drivers within the Orlando metro area continue to support residential development even as surrounding markets soften.
Palm Beach County – In Southeast Florida, Palm Beach County recorded 1,831 permits, reflecting a healthy 16% increase over last year. The county remains one of the more impressive growth markets in South Florida and continues to attract significant residential investment.
Baldwin County – Although located in Alabama, Baldwin County is included within HBW’s Northwest Florida coverage area. The county added 1,760 new residential construction permits, representing a 13% year-over-year increase. Its continued growth reinforces broader expansion trends occurring throughout the Gulf Coast region.
Walton County – Among the many counties featured in the report, Walton County delivered a noteworthy percentage gain. The county recorded 1,254 new residential construction permits through Q3 2026, reflecting a substantial 38% increase compared to 2025.
Higher-Value (>$500k) Residential Construction
When looking specifically at permits for homes valued above $500,000, several regions continue to dominate Florida’s premium residential construction market:
West Florida – West Florida recorded 2,674 higher-value residential permits through Q3 2026. Considering that the region generated 3,532 such permits during all of 2025, current activity suggests West Florida remains on pace to finish near last year’s total.
Southwest Florida – Southwest Florida added 2,121 higher-value permits through the third quarter. With 2,496 total higher-value permits recorded during all of 2025, the region appears positioned to potentially exceed last year’s annual figures if permit activity remains consistent through year-end.
Southeast Florida – Southeast Florida reported 2,069 higher-value residential permits through Q3 2026. Notably, the region recorded 2,159 higher-value permits during all of 2025, meaning it has already reached nearly the entirety of last year’s volume with one quarter still remaining. Among Florida’s major regions, Southeast Florida appears particularly well-positioned to finish 2026 ahead of 2025 within the higher-value segment.
What the Data Suggests Going Forward
If there is a central takeaway from Florida’s residential construction market through the third quarter of 2026, it is that the state is experiencing a period of selective weakness rather than universal decline. Yes, the statewide permit count is down 4%, but that headline figure only tells part of the story. Northeast Florida, Northwest Florida, and Southeast Florida are all outperforming the broader trend. Individual counties such as Manatee, Palm Beach, Orange, Walton, Duval, and Baldwin are generating meaningful growth despite market headwinds elsewhere.
Meanwhile, regions such as West Florida and Southwest Florida continue to produce the largest concentrations of residential construction activity, even while operating at slower rates than a year ago. And while Florida’s residential market may not be delivering the breakneck growth rates seen during previous expansion cycles, one thing remains clear: builders are still building, buyers are still buying, and more than 77,000 new residential permits through three quarters of the year is hardly evidence of a market taking a nap. Rather, it appears that Florida’s construction industry is doing something far less dramatic and far more sustainable: finding its footing in a changing market.
To gain more information on the builders, homeowners and permits for the construction activity above, check out HBW for your copy of the latest construction data reports. To gain access to the HBW database and receive custom and detailed reports on the latest residential and commercial building activity in Florida, Georgia, Texas, Alabama, and Oklahoma, please contact HBW for details.