Skip to content
  • REAL News Topics
    • Housing Market Updates
    • For Sellers
    • For Buyers
    • First Time Home Buyers
    • Move-Up Buyers
    • Pricing
    • Interest Rates
  • Resources
    • Search MLS Listings
    • Free Home Valuation
    • How to Buy a Home
    • Community Research
  • Careers
  • My Listing
  • Contact Us
Menu
  • REAL News Topics
    • Housing Market Updates
    • For Sellers
    • For Buyers
    • First Time Home Buyers
    • Move-Up Buyers
    • Pricing
    • Interest Rates
  • Resources
    • Search MLS Listings
    • Free Home Valuation
    • How to Buy a Home
    • Community Research
  • Careers
  • My Listing
  • Contact Us

Follow us on social media!

Facebook-f Twitter Linkedin Youtube
  • Login
  • Sign Up
  • REAL News Topics
    • Housing Market Updates
    • For Sellers
    • For Buyers
    • First Time Home Buyers
    • Move-Up Buyers
    • Pricing
    • Interest Rates
  • Resources
    • Search MLS Listings
    • Free Home Valuation
    • How to Buy a Home
    • Community Research
  • Careers
  • My Listing
  • Contact Us
Menu
  • REAL News Topics
    • Housing Market Updates
    • For Sellers
    • For Buyers
    • First Time Home Buyers
    • Move-Up Buyers
    • Pricing
    • Interest Rates
  • Resources
    • Search MLS Listings
    • Free Home Valuation
    • How to Buy a Home
    • Community Research
  • Careers
  • My Listing
  • Contact Us

Call Us Today

763-324-9364

  • Jun 02, 2025
Blogs

Newly Built Homes May Be Less Expensive Than You Think

  • Brad Johnson
  • 11:04 am
Newly Built Homes May Be Less Expensive Than You Think Simplifying The Market

Do you think a brand-new home means a bigger price tag? Think again.

Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in):

a graph of sales and pricesYou read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed they’d be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s housing market.

Why Are Newly Built Homes Less Expensive Right Now?

1. Builders Are Building Smaller Homes

Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below):

a graph of a growing graphAnd as size goes down, the price often does too. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them.

2. Builders Are Offering Price Cuts and Incentives

In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5%. That’s because they want to be sure they’re selling the inventory they have before they build more.

On top of that, 61% of builders also offered sales incentives – like helping with closing costs or buying down your mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market.

Your Next Step? Ask Your Agent What’s Available Near You

If you’re trying to buy a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own.

Plus, buying a newly built home often means there are different steps in the process than if you purchase a home that’s been lived in before. That’s why it’s so important to have your own agent who can explain the fine print. You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first.

Bottom Line

You could get a home that’s brand new, with modern features, at a price that’s even lower than some older homes. Talk with a local real estate agent about what you’re looking for and see if a newly built home is the right fit for you.

If buying a home is on your to-do list, what would stop you from exploring newly built options?

Related Articles

Loading...

Jun 3, 2025

Why Buying Real Estate Is Still the Best Long-Term Investment

May 30, 2025

Home Projects That Add the Most Value

May 29, 2025

Is It Better To Rent or Buy a Home?

May 28, 2025

The Secret To Selling Your House in Today’s Market

1 2 … 247 Next »
Search

© 2001-2023 TheMLSonline.com | All rights reserved | Equal Housing Opportunity

TheMLSonline.com is a member of RMLS, but is not a multiple listing service. Members of NAR®, MAAR®, and RMLS of MN®

Members of:
© 2022 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. The data relating to real estate for sale on this site comes in part from the Broker Reciprocity program of the Regional Multiple Listing Service of Minnesota, Inc. Real Estate listings held by brokerage firms other than TheMLSonline.com are marked with the Broker Reciprocity logo or the Broker Reciprocity house icon and detailed information about them includes the names of the listing brokers. TheMLSonline is not a Multiple Listing Service (MLS), nor does it offer MLS access. This website is a service of TheMLSonline, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc. Information is deemed reliable but is not guaranteed.

TheMLSonline.com, Inc. offers a top real estate team with the ability to help you find the perfect luxury home, or to sell your house fast at the price you want serving the Minneapolis Area including communities: Plymouth | Maple Grove | Blaine | Andover | Minneapolis | St Paul | Champlin | Coon Rapids | Ramsey | Anoka | Ham Lake | Brooklyn Park | Minnetonka | Spring Lake Park | Rogers | Otsego | Elk River | Brooklyn Center | Golden Valley | Wayzata | Albertville | Orono | Robbinsdale | Crystal | Fridley

Facebook-f Twitter Linkedin Youtube
© 2001-2022 TheMLSonline.com | All rights reserved