A Mid-Year Look at 2025 Trends and Regional Activity

As of the close of Q2 2025, Florida’s residential construction market remains active but shows mixed performance across regions. According to the latest HBW Building Activity Trend Reports, there were 55,311 new residential construction permits on record statewide from January through June of this year. While this figure reflects robust building activity, it also marks a modest 2% year-over-year (YTD) decrease compared to the same period in 2024 (56,175 permits).

To put this into context, Florida’s new home construction market experienced a 5% YOY dip in 2022, a steeper 14% decline in 2023, and stabilized with 0% change in 2024. This year’s mild contraction may indicate continued market normalization, with region-specific gains and losses shaping the statewide average.

Regional Breakdown: Growth in the Center, Contraction in the Northeast and Southwest

Despite the overall (and nominal) dip, several regions in Florida are seeing significant growth in new residential construction activity:

• Central Florida is leading the charge with 8,478 new permits, reflecting an 18% increase over the same period last year. This surge suggests strong demand and developer confidence in the region.
• West Florida also experienced healthy growth, with 14,451 permits pulled through Q2 — an 8% increase YTD.
• Northwest Florida remained relatively stable with a 1% increase and a total of 6,366 permits.

Conversely, some regions posted notable declines:

• Northeast Florida reported 9,147 permits, but this figure represents an 18% YTD decrease, making it the region with the sharpest decline in permit activity so far this year.
• Southwest Florida saw 11,852 new permits, reflecting an 8% decrease YTD.
• Southeast Florida held relatively steady, with 5,017 permits, reflecting a modest 2% decline.

The above listed regional differences highlight the nuanced shifts in housing demand, labor availability, land development, and market confidence across the state.

Spotlight on High-Value Construction

Luxury and higher-value construction (permits valued over $500,000) continues to represent a strong segment of the Florida housing market. While 2025 data only covers through Q2, several regions are already approaching or surpassing half of their 2024 totals:

• West Florida leads the state so far in 2025 with 1,952 higher-value permits, nearing its 2024 total of 2,276.
• Central Florida has logged 1,361 permits valued over $500k (2024 total: 2,295).
• Southeast Florida is tracking strong with 1,140 high-value permits, already covering nearly 70% of its 2024 total (1,633 permits).

Other regions such as Southwest Florida, Northwest Florida, and Northeast Florida are also on pace to match or slightly exceed their prior year totals by the end of 2025.

This uptick in high-value homes is indicative of ongoing demand in mid-to-upper tier markets, and possibly a result of buyers seeking more space, custom features, or investing in long-term residences.

Top-Performing Counties for Residential Construction

On a county level, several key areas are driving Florida’s residential construction numbers. The following counties recorded the highest volume of new permits through Q2 2025:

1. Lee County (SW): 4,772 permits | +5% YTD
2. Pasco County (West): 4,040 permits | +39% YTD
3. Polk County (West): 3,946 permits | -21% YTD
4. Marion County (NE): 2,922 permits | -3% YTD
5. Manatee County (SW): 2,289 permits | -30% YTD
6. Sumter County (West): 2,288 permits | +36% YTD
7. Hillsborough County (West): 2,266 permits | -7% YTD
8. Duval County (NE): 2,185 permits | -12% YTD
9. St. Johns County (NE): 1,951 permits | -29% YTD
10. Orange County (Central): 1,877 permits | +6% YTD

Counties like Pasco and Sumter are experiencing significant gains, suggesting these areas may be benefiting from population growth, favorable development conditions, and proximity to metropolitan hubs. On the flip side, St. Johns, Manatee, and Polk Counties are showing double-digit declines, possibly due to shifting inventory cycles, permitting delays, and/or temporary market saturation.

A Balancing Market with Regional Momentum

While Florida’s statewide residential construction volume has slightly contracted compared to last year, the overall market remains strong, particularly in Central and West Florida. The rise in higher-value construction and the strong performance in key counties underscore ongoing demand — especially in suburban and semi-rural areas positioned for growth.

As we enter the second half of 2025, all eyes will be on whether emerging growth regions can maintain momentum and if previously declining markets will stabilize or rebound. Builders, investors, and stakeholders should continue to monitor regional trends and adjust strategies accordingly to align with evolving market conditions.

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.