Franklin, TN, has become one of the most sought-after locations in Middle Tennessee, attracting homebuyers looking for new construction homes. With its top-rated schools, historic charm, and strong job market, Franklin offers the perfect mix of modern living and Southern tradition.

But what’s fueling the demand for new construction homes in Franklin? In this guide, we’ll explore the key factors driving the boom, why homebuyers are choosing new builds over resale homes, and what this means for the future of the Franklin housing market.

1. Population Growth & Migration to Franklin

Franklin’s population has surged in recent years, fueled by both local expansion and an influx of out-of-state buyers.

Key Factors Behind the Growth:

  • Job Opportunities – Proximity to Nashville’s booming economy and corporate hubs in Cool Springs.
  • Relocation from High-Tax States – Buyers from California, Illinois, and New York are drawn to Tennessee’s no state income tax.
  • Top-Ranked Schools – Williamson County Schools rank among the best in Tennessee, making Franklin a top choice for families.

Impact on New Construction:
With more people moving to Franklin, the demand for modern, energy-efficient homes has increased, leading to rapid development of master-planned communities and luxury home neighborhoods.

2. Limited Inventory of Resale Homes

The shortage of existing homes for sale is pushing buyers toward new construction options.

Why Resale Homes Are Hard to Find:

  • Strong Housing Market – Many homeowners are holding onto their properties, reducing available listings.
  • Competitive Bidding Wars – Buyers face multiple offers and over-asking price sales on resale homes.
  • Aging Housing Stock – Some buyers prefer new builds over outdated homes requiring renovations.

Impact on New Construction:
Since resale home inventory remains tight, more buyers are opting to build new rather than compete in a heated resale market.

3. Demand for Customization & Modern Home Features

Today’s homebuyers want personalized spaces, open layouts, and smart home technology, which older homes don’t always offer.

Top Features Driving New Construction Demand:

  • Open-Concept Floor Plans – More space for entertaining and everyday living.
  • Energy Efficiency – Smart thermostats, solar panels, and upgraded insulation.
  • Home Offices & Flex Spaces – Work-from-home trends have made dedicated office spaces essential.
  • Luxury Amenities – Modern kitchens, spa-style bathrooms, and outdoor living areas.

Impact on New Construction:
Buyers are choosing new homes so they can get exactly what they want instead of settling for an outdated resale home.

4. Strong Job Market & Corporate Growth

Franklin is home to a growing number of corporate headquarters, making it a prime destination for professionals.

Major Employers in Franklin & Cool Springs:

  • HCA Healthcare – One of the largest hospital operators in the U.S.
  • Nissan North America – Corporate headquarters located in Cool Springs.
  • Mars Petcare – A major employer in the pet food industry.
  • Tractor Supply Company – A Fortune 500 company based in Brentwood.

Impact on New Construction:
The presence of high-paying jobs has led to increased demand for housing, especially among professionals looking for luxury homes with short commutes.

5. Master-Planned Communities & New Development

Franklin has seen a rise in master-planned communities that offer resort-style amenities, green space, and modern home designs.

Top New Home Communities in Franklin:

  • Westhaven – A walkable, golf-course community with custom homes and townhomes.
  • Berry Farms – A mixed-use development with residential, retail, and office space.
  • Lookaway Farms – A high-end community with estate homes on large lots.
  • Waterford – A new luxury development offering high-end amenities.

Impact on New Construction:
These planned communities provide homebuyers with move-in-ready and customizable new builds, attracting both locals and newcomers.

6. Low Interest Rates & Favorable Financing Options

While mortgage rates have fluctuated, many homebuyers still see new construction as a strong long-term investment.

Financial Factors Supporting New Construction:

  • Builder Incentives – Many homebuilders offer closing cost assistance and rate buy-downs.
  • Lower Maintenance Costs – New homes require less upkeep than older resale properties.
  • Fixed Mortgage Rates – Locking in a rate on a new home build provides long-term financial security.

Impact on New Construction:
New homebuyers take advantage of financing incentives, making custom and semi-custom homes more appealing.

7. Investment Potential & Property Value Growth

Franklin’s real estate market continues to appreciate, making new construction homes a smart investment.

Real Estate Trends in Franklin:

  • Median Home Price Growth – Home values have increased over 40% in the past five years.
  • High Resale Demand – Well-built new homes retain value due to location and quality.
  • Rental Market Growth – New construction homes also attract high-end renters looking for premium properties.

Impact on New Construction:
Buyers see new homes as a long-term asset, benefiting from appreciation in Franklin’s strong housing market.

Why Franklin’s New Construction Market is Thriving

Factor Impact on New Construction
Population Growth More people moving to Franklin fuels demand for new homes.
Resale Home Shortage Limited inventory pushes buyers toward new builds.
Desire for Customization Buyers want modern designs and energy efficiency.
Job Market Strength High-paying jobs attract homebuyers.
New Home Communities Master-planned developments cater to growing demand.
Favorable Financing Builder incentives and mortgage options make new homes attractive.
Investment Potential Franklin’s appreciation rates make new homes a smart purchase.

Final Thoughts

Franklin, TN, is a booming real estate market, and demand for new construction homes shows no signs of slowing down. With strong job growth, high quality of life, and top-tier schools, Franklin remains a top destination for homebuyers looking to build or buy a new home.

Thinking about building a custom home in Franklin? Contact us today to explore the best new home communities and construction options!