U.S. housing permits were broadly unchanged in the first eight months of 2026, masking sharp differences among states. Idaho, South Carolina and North Carolina recorded permit activity well above the national average, according to a report from the University of Nevada, Las Vegas (UNLV) Lied Center for Real Estate. Projects approved now could add housing supply in 2028 and 2029, with potential implications for local home prices and affordability.
Idaho leads in permits per capita
The national average was 2.83 permitted homes per 1,000 residents. Idaho, South Carolina and North Carolina each recorded rates more than twice that level. Idaho ranked first among the report’s top 10 states, with 12,994 homes approved from January through August 2026 — 126% above the national average on a per-capita basis.
The report also measured supply against the number of households facing high housing costs. It defined those households as spending at least 30% of their income on housing. Idaho ranked first on this measure as well.
More permits do not mean housing is already affordable. The report estimates that Idaho household incomes would need to be 47% higher than current levels for affordability to return to its 2018 benchmark. That year, the median-priced home cost the equivalent of 28.7% of median household income in the state. The share has since risen to 42.1%.
South Carolina tops the supply-pipeline rankings
South Carolina ranked first overall across the report’s four measures of the housing supply pipeline, including permits per 1,000 residents. The state approved 33,822 homes in the first eight months of 2026, placing second nationally on a per-capita basis and 114% above the U.S. level. Permits were up 5% from the same period in 2025 and 15% from 2023.
South Carolina household incomes would need to rise by about 35% for housing affordability to return to its 2018 level, a smaller gap than in Idaho. Nicholas Irwin, research director at the UNLV Lied Center for Real Estate and a co-author of the report, said the Carolinas and Idaho were among the states leading in homebuilding. Some states, he added, have taken steps to encourage more housing construction.
Land and population growth shape building activity
Irwin said states including South Carolina, Idaho, North Carolina, Kansas and Nebraska have relatively large amounts of developable land, an important input for homebuilding. Developers’ decisions to start projects also depend on whether they see signs of rising demand.
Additional housing supply could put downward pressure on home prices. If wages continue to rise year after year, affordability may also improve, Irwin said. But permit counts alone do not capture a state’s housing conditions. Population growth, the pace of household formation and the share of residents facing high housing costs also matter, and demand and building conditions vary from state to state.
Tennessee’s permit activity loses momentum
Tennessee was among the 10 states with the highest permit counts, at 3.88 homes per 1,000 residents, above the national average. But it ranked 18th overall across the report’s four measures. Permits per resident fell 4.9% from 2025 and 18.5% from 2023, pointing to a slowdown in recent years.
The report tracks approved projects, not completed homes. Whether the permitted units ease price pressures will depend on projects moving forward, as well as local population growth, household formation and housing costs.