For the First Time in Recent History, New Home Price Reductions Outpace Existing Homes: Realtor.com® Report Finds
MWN-AI** Summary
According to a recent report from Realtor.com®, for the first time in modern history, price reductions for new homes have surpassed those for existing homes, marking a significant shift in the housing market. By late 2025, nearly 20% of newly built homes experienced price cuts, compared to 18.3% of existing homes. This trend indicates a more competitive landscape as builders adjust to affordability pressures and increased inventory from the resale market.
The report highlights that price reductions are most prevalent in states like Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey, and Texas, where new construction price cuts exceed the national average. While traditionally, price reductions in the resale market were concentrated in the South and West, new construction trends follow a similar regional framework, albeit with notable exceptions in the Midwest.
Danielle Hale, chief economist at Realtor.com®, noted that this movement reflects builders' responses to maintaining sales momentum in a changing market environment, despite overall new home prices remaining stable. For instance, the median listing price of new homes was $451,128, showing minimal year-over-year growth.
The report also delineated differences between property types, revealing that newly built condos and townhomes carry a higher price premium compared to newly built single-family homes, primarily due to geographic factors. These condos are often found in high-cost urban markets, whereas single-family homes are expanding in more affordable areas.
Overall, the findings underscore that new construction is increasingly becoming a solution to affordability challenges, as the market evolves to meet the needs of homebuyers seeking more accessible options.
MWN-AI** Analysis
The findings from the recent Realtor.com® report suggest a significant shift in the housing market dynamics, wherein new home price reductions are now overtaking those of existing homes. This trend, observed for the first time in recent history, indicates heightened competition among builders and signifies evolving consumer preferences amidst affordability challenges.
For potential homebuyers, this presents a unique window of opportunity. With nearly one in five newly constructed homes experiencing price cuts, buyers may find substantial savings by focusing on new builds, particularly in states like Nevada, Indiana, and South Carolina, where reductions are notably higher than the national average. This competitive pricing environment could incentivize prospective buyers to explore options they may have previously deemed out of reach.
Investors should consider this shift as a signal to reassess strategies in the housing market. Given that new home prices have not drastically increased—remaining only marginally higher than a year ago—investing in new construction could yield favorable returns if market conditions stabilize. The divergence in pricing between new single-family homes and existing properties is narrowing, indicating a potential trend where new builds may become increasingly appealing, further enhancing resale value in the long run.
While it's important to remain aware of geographic variations, with notable price reductions concentrated in certain states, overall market indicators suggest that the new construction segment may provide a more balanced and affordable option for buyers. Additionally, while the data indicates a premium for newly built condos and townhomes, single-family units are addressing the affordability gap, making them more attractive for families and long-term investors alike.
In conclusion, the present market landscape favors both buyers and investors who are willing to adapt and explore the growing segment of new construction. A thorough analysis of local market conditions and a proactive approach could lead to advantageous purchasing decisions in a fluctuating housing environment.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey and Texas Lead the Way When it Comes to Share of Price Reduced New Construction
AUSTIN, Texas, Feb. 12, 2026 /PRNewswire/ -- Nearly one in five new homes saw price cuts in late 2025, overtaking the resale market for the first time in recent history, according to Realtor.com® Quarterly New Construction Insights. In the same quarter, the share of existing homes with cuts was 18.3%, signaling a shift in how builders and existing-sellers are competing for homebuyers. Price reductions in the existing-home market are generally concentrated in the South and West, and the data reveal that new construction homes also follow this geographic pattern, with some exceptions. Although they are in the Midwest and Northeast, Indiana, Minnesota, and New Jersey have more price reductions on newly-built homes than the national level.
"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," said Danielle Hale, chief economist at Realtor.com®. "Nearly one in five new homes cut prices, more than in the resale market for the first time in recent history. This is not just a reflection of regional divergence and where new homes are built; we are seeing builders compete more directly on price to keep sales moving, even as overall new-home prices remain relatively stable."
There are seven states, Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey and Texas, where the rate of price reductions is higher than the national level (18.3%). In these states, there are more price reductions among new construction listings than existing listings, though most of them have relatively high levels of existing home price reductions as well. Four of them are in the South or West, where new construction activity is highest and general home inventory is elevated, but the other three (Indiana, Minnesota, and New Jersey) truly stand out. Four of these are situated in the South or West, regions characterized by high levels of new construction and elevated inventory. Indiana, Minnesota, and New Jersey represent the three notable exceptions.
State | New Construction Price Reduced Share | Existing Home Price Reduced Share |
Nevada | 24.8 % | 19.6 % |
Indiana | 23.3 % | 22.1 % |
South Carolina | 21.6 % | 17.4 % |
Minnesota | 21.6 % | 17.4 % |
North Carolina | 21.3 % | 19.1 % |
New Jersey | 19.9 % | 10.7 % |
Texas | 19.0 % | 17.5 % |
In the fourth quarter of 2025, the median listing price for a newly built home was $451,128, up just 0.3% from a year earlier, while resale home prices were essentially flat. But those topline numbers mask a widening divergence by property type. Newly built condos and townhomes carried a substantially higher premium (30.7%) over existing attached homes, while newly built single-family homes were priced just 10.7% above existing single-family homes—a gap that has been shrinking.
In Key Metros, Condos Can Carry A Price Premium Compared to Single Family Homes
This report also explored newly built condos compared to newly built single family homes and found newly built condos and townhomes cost more than newly built single-family homes nationwide. This finding is due largely to geography and where new condos are being built.
Newly built attached homes are concentrated in high-cost urban markets, while new single-family construction is expanding in more affordable metros, particularly across the South and West. Nearly 10% of all new condos for sale nationwide are located in the New York and Miami metropolitan areas, where median prices exceed $1 million. Meanwhile, new single-family construction is dominated by markets such as Houston, Dallas-Fort Worth, San Antonio, Atlanta, and Phoenix, where prices are closer to the national median and supply is more plentiful.
"What we're seeing is a market where single-family new construction is filling an affordability gap that resale homes increasingly can't," said Joel Berner, senior economist, Realtor.com®. "Condos are still playing an important role in certain markets, but they're skewing more luxury, while detached homes are doing more of the work when it comes to expanding supply."
Methodology
Realtor.com housing data as of December 2025. Listings include the active inventory of newly built single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com. Realtor.com new construction data history goes back to January 2023.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Mallory Micetich, press@realtor.com
SOURCE Realtor.com
FAQ**
How might the trend of new home price reductions outpacing existing homes, as reported by Realtor.com®, impact the investment strategy of News Corporation NWSA in the real estate sector?
What regional factors contribute to the higher rate of price reductions in new constructions compared to existing homes in markets noted by Realtor.com®, and how does this affect News Corporation NWSA's market outlook?
Considering the report findings from Realtor.com® that indicate nearly one in five new homes saw price cuts, how could this affect consumer perceptions and investment opportunities for News Corporation NWSA?
How does the competition between builders and existing home sellers influence the overall housing market, and what implications could this have for News Corporation NWSA's future real estate investments?
**MWN-AI FAQ is based on asking OpenAI questions about News Corporation (NASDAQ: NWSA).
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