Florida home construction cools, but growth pockets emerge
Florida recorded 51,444 new-home permits through the second quarter, down 7% from a year earlier, though Northwest Florida and several counties posted growth.
Florida’s new-home construction activity continued to ease during the first half of 2026, although several regions and counties posted gains that ran counter to the statewide trend, according to the latest HBW Building Activity Trend Report.
HBW, a DeBary-based building permit data company, recorded 51,444 new residential construction permits statewide through the second quarter, down 7% from the same period in 2025. That followed a 4% annual decline in 2025.
"In other words, the market was already easing, and the 2026 numbers may simply be an extension of that trend rather than a sign of structural distress," HBW said in its report. "Mid‑year figures can be notoriously misleading — Q2 is often too early to declare victory or defeat — so the prudent interpretation is that Florida’s residential construction market is cooling a bit, not collapsing."
West Florida remained the state’s busiest construction region with 12,489 permits, despite a 14% decline. Southwest Florida followed with 10,988 permits, down 7%.
Regional results included:
- Northwest Florida: 7,093 permits, up 11%, making it the state’s strongest-performing region
- Southeast Florida: 5,069 permits, up 1%
- Northeast Florida: 8,766 permits, down 4%
- Southwest Florida: 10,988 permits, down 7%
- West Florida: 12,489 permits, down 14%
- Central Florida: 7,039 permits, down 17%, the largest regional decline
County results showed even wider differences
Lee County led Florida with 3,333 permits, although activity fell 30%. Polk County recorded 3,224 permits, down 18%, while Pasco County had 3,130 permits, down 23%.
Manatee County stood out among the state’s highest-volume counties, recording 3,179 permits — a 39% increase from the first half of 2025.
Other counties posting growth included:
- Walton County: 855 permits, up 41%.
- Palm Beach County: 1,264 permits, up 10%.
- Lake County: 1,637 permits, up 7%.
- Bay County: 1,210 permits, up 5%.
- Marion County: 2,921 permits, unchanged from a year earlier.
HBW noted that Marion County’s flat performance may indicate that activity is stabilizing after the county experienced a 23% decline in 2025.
Higher-value residential construction also remained relatively strong. West Florida recorded 1,762 permits for homes valued at $500,000 or more, followed by Southwest Florida with 1,381 and Southeast Florida with 1,344.
"Taken together, these figures suggest that higher‑value residential construction remains notably robust, indicating that demand for premium homes is holding firm even as overall statewide permit volume shows signs of softening," HBW said.
The report emphasized that local conditions vary considerably, making county-level permit activity especially important for builders and real estate professionals assessing where new inventory may be expanding or slowing.
"In short, residential construction in Florida through Q2 2026 is best described as cooling, but still active; declining, but not distressed; shifting, but not stalling," the report stated.
© 2026 Florida Realtors®