For years, home buyers have assumed that new construction came with a hefty price tag. Modern finishes, fresh layouts, and the appeal of being the very first owner typically pushed new homes far above resale prices. But in today’s housing market, that script has flipped. The gap between new and existing home prices has all but disappeared—and in some places, new homes are even cheaper.
Ali Wolf, chief economist for NewHomeSource and Zonda, calls it an “unprecedented change.” In April 2025, the median price of a new home in the U.S. was $407,200, compared to $414,000 for an existing home. In Raleigh, North Carolina, new homes are now selling for about 2% less than resales. “This is unheard of, very unusual,” Wolf says.
Incentives Driving the Shift
The narrowing price gap is not happening by chance. Builders are rolling out aggressive incentives—mortgage-rate buydowns, closing cost assistance, design upgrades, and price cuts—to entice buyers struggling with affordability. In June, 37% of builders reported lowering prices, while more than 60% offered perks to sweeten the deal, according to the National Association of Home Builders.
These incentives can make a noticeable difference. “From a consumer perspective, that’s an extra layer of savings,” Wolf explains. Real estate agent Erica Wolfe in Jupiter, Florida, says her clients are paying closer attention to new construction because of those perks. “Builders are offering mortgage-rate buydowns, sometimes as low as 4.5% or 5%, compared to the higher 6% rates in the resale market. That’s huge for buyers right now,” she says.
Quick Move-In Homes Gain Appeal
Another selling point is speed. Many builders are promoting “quick move-in” homes—properties already under construction that can be ready in 90 days or less. These appeal to buyers who want the benefits of new construction without the long wait or the hassle of design decisions.
Builders Feel the Pinch
Of course, these incentives come at a cost to the industry. “It’s definitely hurting the builders,” Wolf admits. Margins are shrinking, forcing companies to rethink how they deliver affordability. Some are designing smaller homes, shifting construction farther from city centers, or increasing their stock of townhomes and other attached housing.
A Buyer’s Window of Opportunity
For buyers who once dismissed new homes as out of reach, the current market is creating rare opportunities. With new construction priced on par with resales—and often bundled with significant perks—agents are beginning to steer clients toward neighborhoods they may not have considered before.
“If you’re looking at an existing home that’s dated, needs work, and is priced about the same as a brand-new home with modern finishes and energy efficiency, why not choose new?” Wolf asks.
For now, the alignment of new and resale prices is a unique window in the housing market—one that could close as quickly as it appeared. Buyers willing to explore their options may find that the dream of owning new construction has never been more within reach.