According to the latest HBW Building Activity Trend Report, new residential construction across Texas remained in positive territory through the second quarter of 2025, marking a steady continuation of growth from last year’s rebound. Statewide, 41,586 new residential construction permits were added to the books through Q2 — a 4% year-to-date (YTD) increase compared to the same period in 2024.

This pace represents a notable shift from the market volatility of recent years. After experiencing back-to-back annual declines in 2022 (-8%) and 2023 (-16%), the sector saw signs of recovery in 2024 with a 10% YTD increase by mid-year. The 2025 data indicates that while growth has slowed slightly compared to last year’s double-digit gains, market fundamentals remain stable.

Regional Performance

While the statewide market is up overall, growth is uneven across the four major metro regions tracked in the report. Dallas is the only metro to show double-digit gains this year, while Houston remains essentially flat, and Austin and San Antonio register modest YTD declines.

Dallas

• Total Permits: 14,074 permits (+20% YTD)
• Top Counties:
  • Collin County: 5,339 permits (-4.8% YTD)
  • Tarrant County: 3,427 permits (+299% YTD)
• Higher Value Activity: In 2024, the Dallas metro issued 5,313 permits valued above $500K. Through the first half of 2025, 1,398 such permits were recorded in Q1, followed by 1,730 in Q2.

Dallas continues to lead the Texas market, fueled by a significant spike in Tarrant County activity, which more than tripled compared to the same time last year. Despite a small pullback in Collin County, the region’s sustained demand for new housing — particularly in higher value segments — possibly signals robust buyer confidence.

Houston

• Total Permits: 19,846 permits (-1% YTD)
• Top Counties:
  • Harris County: 9,172 permits (+1.7% YTD)
  • Montgomery County: 5,996 permits (+1.6% YTD)
• Higher Value Activity: In 2024, the region saw 1,816 higher value permits. For 2025, 534 permits over $500K were issued in Q1 and 567 in Q2.

The Houston market is essentially flat compared to the same time in 2024, with small but positive gains in its highest-volume counties. Stable performance in the $500K+ segment suggests that while the pace has leveled off, the region remains a steady driver of statewide residential construction.

Austin

• Total Permits: 3,929 permits (-5% YTD)
• Top Counties:
  • Travis County: 1,603 permits (-18% YTD)
  • Williamson County: 1,580 permits (+18.5% YTD)
• Higher Value Activity: In 2024, Austin recorded 833 higher value permits. In 2025, Q1 saw 138 such permits, with a sharp increase to 301 in Q2.

Austin’s overall activity is down slightly, largely due to a notable slowdown in Travis County. However, Williamson County is on the upswing, and the Q2 jump in luxury construction points to a potential mid-year shift toward higher-end residential projects.

San Antonio

• Total Permits: 3,737 permits (-9% YTD)
• Top Counties:
  • Bexar County: 2,547 permits (-9% YTD)
  • Guadalupe County: 737 permits (+1.1% YTD)
• Higher Value Activity: In 2024, the region saw 444 permits valued above $500K. So far in 2025, there were 138 in Q1 and 122 in Q2.

San Antonio is experiencing the sharpest YTD decline among the major metros, with slower activity in its primary market of Bexar County. Modest growth in Guadalupe County provides a small offset, and higher value construction appears to be somewhat in line with last year’s figures.

Market Outlook

Through mid-2025, the Texas residential construction sector appears to be holding steady after last year’s solid rebound. The overall 4% YTD growth reflects resilience in the face of shifting market conditions, although the momentum is concentrated in select regions (most notably Dallas).

High-value residential construction remains a key driver across all metros, with luxury homebuilding exhibiting some gains in both Dallas and Austin during Q2. Houston’s consistency offers stability to the statewide market, while San Antonio’s ongoing slowdown warrants continued monitoring.

If current trends persist, Texas is on track to close out 2025 with another year of permit growth — a welcome contrast to the contraction seen earlier in the decade.

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.