"A look at the June housing numbers showed that the medium sale price for an existing home was $441,500, while new ones sold for $401,800, according to Forbes. Do that math and that means brand-new homes were 9% cheaper, than old, or "existing" ones-a new record. According to U.S. Census Bureau data, the medium price for a new home sold in July 2025 was 0.8% below June 2025 prices, and 5.9 percent from July 2024. So, not only are new builds less expensive, they are now selling at a sharp discount."
""The affordability difference goes beyond sticker price, too, as many builders are offering incentives like cash at closing or reduced mortgage rates that make a major difference in upfront costs and monthly payments," Realtor.com senior economist Joel Berner explained. New homes are also relatively cheaper now because, in an effort to keep costs down, builders are creating new homes with smaller floor plans. And geography plays a role, too, with new home builds more often located in lower-priced markets."
Median sale prices show existing homes at $441,500 and new homes at $401,800 in June, making new builds about 9% cheaper. U.S. Census Bureau data show the median new-home price in July 2025 was 0.8% below June 2025 and 5.9% below July 2024, indicating a sharp discount for new construction. New-home prices are falling fastest in weaker markets, with examples like Little Rock down 15.6% and Austin down 8.5% year-over-year. Builders are offering incentives such as cash at closing and reduced mortgage rates, creating smaller floor plans to cut costs, and building more in lower-priced geographies. Many sellers hold low or no mortgages after COVID-era rate drops, reducing their incentive to list or lower asking prices.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]