Does Catholicism teach a physical 'New Earth' or is it only a state of mind?

In my Catholic catechism classes, I have always heard that a Christian's ultimate aim is to reach heaven with the Lord and that heaven is not a physical place but a state of mind. But in Revelation chapter 21, and also in some places of Old Testament, it is said that God will make a New Earth (or reform this corrupted earth so that, essentially, it's a new earth). Is that where humans are finally destined to be? Is that going to be a physical place just as this earth? What is the Catholic Perspective on these questions?