Measuring construction land utilization levels is essential for the ongoing redevelopment of inefficient construction land in China. However, an efficient and spatially explicit evaluation method of construction land utilization level is under examined and remains a great challenge. In this study, we innovatively utilized nighttime light data and spatial population data to construct the Nighttime Light Development Index (NLDI), which was employed to assess the level of centralized and decentralized construction land utilization level within municipal units. The findings revealed a downward trend in average NLDI for both types of construction land over the past decade, demonstrating a significant improvement in spatial alignment between population distribution and light intensity. Notably, the development level of partially decentralized construction land showed substantial enhancement during 2010–2020. Furthermore, the relationship between construction land development density (CLDD) and NLDI varied across different regions and did not exhibit a significant correlation, which implies that NLDI can provide substantial additional land use information. The research findings offer a scientific reference for promoting efficient construction land utilization and fostering high-quality regional development. The findings also provide a new research perspective and an easy-to-use approach for assessing regional development levels, which can be extended to other countries and regions.