Dive Brief:
- Tennessee ranks first for construction permitting efficiency in the United States, according to the Red Tape Index from regulatory intelligence firm Labrynth.
- The measure tracks how quickly and effectively states process building permits and zoning changes. The index aggregates state-level data from public sources, including building departments, zoning boards and state environmental agencies, according to the report.
- The index spotlights where regulatory delays are most prevalent, and aims to provide actionable insights for public officials to identify bottlenecks.
Dive Insight:
The launch of the index arrives as demand for large-scale projects surges, boosted in part by the Trump administration’s push to accelerate permitting for projects valued at $500 million or more.
That could make or break timelines on major construction projects, especially when review periods stretch from months into years, according to the report.
For example, data center builders often cite permitting friction as a top challenge, alongside power constraints and equipment lead times. About one in eight contractors hold an active data center contract, according to Associated Builders and Contractors.
Here are the top 10 states for permitting efficiency, according to the Red Tape Index:
- Tennessee
- Florida
- Texas
- Indiana
- Arizona
- North Carolina
- Georgia
- Virginia
- Michigan
- New Hampshire
On the other end of the spectrum, here are the bottom 10 states:
- Rhode Island
- Maine
- Vermont
- Maryland
- Massachusetts
- Connecticut
- New York
- New Jersey
- California
- Hawaii
