“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.”
Realtor.com data showed 19.3% of new‑construction listings with price reductions in the fourth quarter of 2025, compared with 18% of resale listings nationwide, with cuts concentrated in the South and West.
Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey and Texas all posted above‑average shares of reduced‑price new builds, ranging from roughly 19% to nearly 25%. In several of those states, the share of discounted new homes exceeded even elevated markdowns on existing stock.
New builds, pricing power and product mix
Despite the broader discounting trend, headline prices barely moved. The median listing price for a newly built home stood at $451,128 in the fourth quarter, up just 0.3% year over year, while resale prices were essentially flat.
