Newly Built Homes May Be Less Expensive Than You Think

Newly Built Homes May Be Less Expensive Than You Think

Think a newly built home automatically comes with a higher price? Not necessarily.

There’s an interesting trend in today’s housing market. Data from the Census and the National Association of Realtors (NAR) shows that the median price for new construction is currently lower than that of previously owned homes:

That’s right — that brand-new home with no previous owners might actually be more affordable than a 20-year-old one nearby. If you’ve been avoiding new construction thinking it’s out of your budget, it might be time to reconsider. You could be overlooking some of the most competitive options in the current market.

Why Are Newly Built Homes Less Expensive Right Now?

1. Builders Are Constructing Smaller Homes

With affordability top of mind for many buyers, builders are adjusting. Instead of focusing on large homes that may be harder to sell, they’re designing more compact ones that better meet current demand. In fact, Census data shows the average size of new single-family homes has noticeably decreased in recent years (see graph below):

As home sizes decrease, costs often follow. Smaller homes require fewer materials, which lowers construction expenses. That lets builders price homes more affordably and appeal to more buyers.

2. Builders Are Reducing Prices and Offering Incentives

In May, the National Association of Home Builders (NAHB) reported that 34% of builders reduced prices — with average cuts of around 5%. That’s because they want to move existing inventory before starting new builds.

On top of price cuts, 61% of builders sweetened the deal with sales incentives, like help with closing costs or mortgage rate buydowns. These strategies are all designed to make homes more budget-friendly and drive sales in today’s market.

What Should You Do Next? Talk to Your Agent About New Builds Near You

If you’re house hunting, ask your agent what new construction is available locally. They’ll have insights into communities you might not find on your own — including which builders are offering deals or perks.

And since the buying process for new builds can differ from purchasing a resale, having your own agent matters. They’ll walk you through the details, negotiate on your behalf, and make sure your interests are front and center every step of the way.

Bottom Line

You might be able to score a brand-new home — with the latest features — for less than what some older homes cost. Let’s connect and explore whether a new build could be a smart fit for you.

Thinking about buying a home? What’s holding you back from checking out new construction?