"The current housing market is entrenched in an affordability crisis, leaving many average American families feeling excluded from the traditional promise of upward mobility and homeownership,"
"New construction has been one of the steadiest parts of the housing market over the past few years, but builders are clearly responding to today's affordability pressures and higher levels of existing-home inventory,"
"What we're seeing is a market where single-family new construction is filling an affordability gap that resale homes increasingly can't,"
A housing affordability crisis is prompting homebuilders to cut new-home prices more aggressively than existing-home sellers. Lennar's average sales price fell 10% year-over-year to $386,000 in Q4 2025. Nearly 20% of new homes had price reductions in Q4 2025, compared with about 18% of existing homes, signaling a shift toward a buyer's market. Mortgage rates remain around 6%, far above pandemic lows below 3%, and the median U.S. home price sits near $400,000, implying roughly $80,000 downpayments. Widespread low savings among Americans limits many buyers, so affordability pressures persist despite discounts on new construction.
Read at Fortune
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