Despite a slowdown in single-family construction activity, newly built homes are becoming increasingly accessible to American buyers, in terms of both availability and affordability.
According to data from the New-Construction Insights report released by Realtor.com, in the second quarter of 2025, the median list price for a newly constructed home remained relatively steady at $450,797 — a modest 0.7% increase from the previous quarter. Year over year, prices are flat, and they’re down 1.4% compared to the same period in 2023. Compared to the second quarter of 2022, when new-construction prices peaked, prices are down 2.6%.
In contrast, the resale market continues to heat up. The median price for an existing home has climbed 2.4% over the past year and 8.4% since the second quarter of 2022.
Although new homes typically offer more space, they now have a notable cost advantage on a per-square-foot basis. New construction is averaging $218.66 per square foot, compared to $226.56 for existing homes. However, this advantage isn’t universal. Only 31 of the 100 largest U.S. metro areas follow this pattern, with most located in the South and West — regions that also have a higher concentration of new-builds contributing to the lower national average.
The relative price stability of new homes, combined with soaring resale prices, has brought the “new-construction premium” — the price difference between new and existing homes — down to its lowest level on record at just 7.8%.
New-home construction has slowed recently, especially in early stages like permits and project starts. Builders are facing higher material costs due to tariffs, while also dealing with weaker buyer demand. This double pressure is causing many to pause or scale back new projects.
Since early 2020, listings for new homes have surged 37.3%, while existing-home listings have grown by just 15.4%, with most of that growth occurring in the last quarter. However, as more resale properties hit the market and take longer to sell, the share of new-construction listings is beginning to decline — now down to 16.4%.
While the national housing market is seeing new-construction homes become more available and affordable, this trend is playing out very differently across U.S. regions.
The report’s regional analysis shows that the South continues to lead the way in terms of new-home availability, offering the highest share of new-construction listings among all regions. The West, meanwhile, has fewer new homes on the market but offers some of the best relative affordability. It was the only region where the new-construction premium increased year over year, driven by a surge in more and lower-priced existing homes entering the market, creating greater competition for new-builds.
In contrast, the Midwest and Northeast are seeing a very different story. New construction in these regions remains largely a premium product — priced more than 50% higher than existing homes. This is a reflection not of consumer demand or builder pricing strategies, but rather of limited inventory. Both regions trail behind in the number of homes available for sale, both new and existing, making new construction a niche luxury market rather than a volume driver of housing supply.
The South leads the nation in both new- and existing-home listings, surpassing its 39.4% share of U.S. households and standing out as the only region where new-builds outnumber resale homes. In contrast, the Northeast, which makes up 17.1% of households, faces the most severe inventory shortage in both categories and has the largest gap between existing and new-construction listings, highlighting a critical need for more affordable new homes.
Overall, the U.S. market continues to see a slow but steady normalization post-pandemic, with new construction offering much-needed relief for affordability — especially in parts of the South and West. However, for buyers in the Midwest and Northeast, the hunt for a an affordable new home remains a tougher challenge amid limited inventory and higher price tags.