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Teardowns vs. infill vs. subdivisions: New NAHB data shows stark regional housing differences

New data published on Monday by the National Association of Home Builders (NAHB) highlights a sharp divide in how America builds new single-family homes. An NAHB analysis of the Builder Practices Survey by the Home Innovation Research Labs (an NAHB subsidiary), finds of last year’s new single-family homes…

• 57.5% were new residential development (i.e., subdivisions)

• 20.1% were infills

• 15.6% were not in a residential development (standalone lot outside a subdivision—often on bigger lots or rural/exurban parcels)

• 6.9% were teardowns and rebuilds

When you combine both categories, New England stands out: over half of its new single-family homes in 2024 were either infills or teardowns/rebuilds. The Middle Atlantic follows with similarly elevated shares, driven by infill activity exceeding 30% in states from New York to Pennsylvania. Meanwhile, in the Mountain West, West South Central, and parts of the South Atlantic, these redevelopment-driven forms of construction are much lower.

Why the Northeast is so teardown—and infill—heavy?

1. Old housing stock + economics. New England and the Middle Atlantic have some of the oldest homes in the country. Some legacy homes are functionally obsolete or require substantial renovation—making teardown-and-rebuilds economically logical. In markets like Boston, New York, and northern New Jersey, land values often exceed the value of the existing structure. Sometimes, in these markets, it’s more cost-effective to tear down a damaged/outdated home. Other times, the rebuilds occur simply because deep-pocketed buyers prefer to purchase an existing home in a prime area, tear it down, and build exactly what they want, rather than waiting for the perfect home to appear in the resale market.

2. There’s less undeveloped land left near job centers. Unlike Texas, the Carolinas, or Denver’s suburbs, the Northeast simply lacks large, contiguous tracts of developable land. That scarcity forces builders to focus on underused parcels or rebuilds. In contrast, metro areas like Raleigh, Phoenix, and Dallas are built around newer zoning frameworks with abundant greenfield opportunities.

Why do the South and Mountain West have more subdivision construction?

Younger housing stocks, lower land costs, and expansive greenfield options mean builders in the South and Mountain West naturally gravitate toward subdivisions. With plenty of land and fewer constraints, redevelopment simply isn’t as necessary at the same scale seen in the Northeast.

Are you a real estate agent?

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Below is a guide to where each Census Division is located 👇