If you’ve been skipping over new construction homes because you assumed they’re more expensive—think again.

Right now, something pretty unexpected is happening in the housing market: brand-new homes are, on average, less expensive than resale homes (yes, the ones that have already been lived in). According to recent data from the U.S. Census and the National Association of Realtors (NAR), the median price of new builds is actually lower than that of existing homes.

Wait… How is That Even Possible?

Let’s break it down:

1. Builders Are Getting Strategic—and Smaller

Affordability is top of mind for buyers, and builders know it. Instead of putting up massive homes with sky-high price tags, many are scaling back and building more modest, budget-friendly homes.

Think cozy over colossal. The average size of a newly built home has been shrinking, which means fewer materials, less square footage, and—most importantly—a lower price point. It’s a win-win: builders move inventory, and buyers get a brand-new home that doesn’t break the bank.

2. Price Cuts and Incentives Are Adding Up

Builders are motivated to sell. In fact, data from the National Association of Home Builders (NAHB) shows that over a third of builders dropped their prices in May—by an average of 5 percent.

And there’s more. Over 60 percent of builders are also offering additional incentives like help with closing costs, mortgage rate buy-downs, or even upgrades. These incentives are making new construction more affordable than many buyers realize.

Should You Consider a New Build?

If you’re currently shopping for a home and haven’t looked into new construction, now may be the perfect time. A local real estate agent can help you find new home communities, builder discounts, and hidden opportunities that don’t always appear on public home search sites.

Buying new construction also comes with its own unique process. From builder contracts to customization options, it’s important to have a professional by your side who can walk you through the details, protect your interests, and help you make confident decisions.

The Bottom Line:

You might be able to buy a brand-new home—complete with modern features, fresh finishes, and warranties—for less than a dated home just down the block.

Let’s talk about your goals and what’s available nearby. A new build might be more attainable than you think.

What’s one thing that would stop you from considering a newly built home?