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 always comes with a higher price? Not necessarily.

Right now, there’s an interesting shift in the housing market. Based on data from the Census and the National Association of Realtors (NAR), the median price of brand-new homes is currently lower than that of existing homes (the ones previously owned and lived in):

It’s true. That brand-new, never-lived-in home could actually be more affordable than a 20-year-old house just around the corner. So, if you’ve dismissed new construction assuming it’s out of your budget, here’s something to consider: you might be overlooking some of the most attractive opportunities in today’s market.

Why Are Newly Built Homes More Affordable Right Now?

1. Builders Are Constructing Smaller Homes

Builders recognize that affordability is a major concern for today’s buyers. Instead of focusing on larger homes that may be harder to sell, they’re shifting toward smaller, more manageable ones. Data from the Census shows that the average size of newly constructed single-family homes has declined significantly in recent years (see graph below):

When homes get smaller, they typically cost less. That’s because smaller homes require fewer materials, making them cheaper to build. This allows builders to offer them at more affordable prices to appeal to more buyers.

2. Builders Are Offering Discounts and Perks

According to the National Association of Home Builders (NAHB), in May, 34% of builders reduced their prices — with the average cut around 5%. They’re motivated to sell existing inventory before starting new projects.

In addition, 61% of builders offered incentives like assistance with closing costs or mortgage rate buy-downs. These strategies help make new homes more accessible to today’s buyers.

What Should You Do Next? Ask Your Agent About Local Opportunities

If you’re house hunting, speak with your agent about what local builders are offering. They can help you discover new developments, available discounts, and incentives — even ones you might not find on your own.

Also, keep in mind that buying new construction involves different steps than buying a resale home. That’s why having an agent is essential. They’ll walk you through every detail, represent your interests, and help you get the best possible deal.

Bottom Line

A brand-new home with the latest features might cost less than an older one. Let’s connect and talk about your goals to see if a new build could be the perfect match for you.

What’s holding you back from checking out new construction options?