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Monday, Feb. 24, 2025

Do red states build more housing per capita than blue states?

Gabriel Vinocur, Econofact
yes

According to data from the U.S. Census, in 2024, states with Republican governors issued 4.66 permits for housing units per 1,000 residents, while the same statistic for states with Democratic governors was at 3.60. 

Idaho (8.80), South Carolina (8.62),  and North Carolina (8.56), led the way in most permits per capita. Meanwhile, Alaska (1.34), Rhode Island (1.51), and Illinois (1.56) were at the bottom of the list. 

Several factors contribute to the partisan divide. More land remains available in larger, rural red states compared to smaller, urban blue states. Red states also have fewer environmental regulations and less restrictive zoning laws, and labor and construction costs tend to be cheaper.

Between January 2021 and April 2024, home-building costs in the U.S. rose by 35%, and Moody’s Analytics calculates that there is a shortage of 2.8 million homes.

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