New Construction Could Be Your Best Bet Right Now; Here's Why

Looking for a better deal on a home — maybe even a lower mortgage rate? You might be surprised to learn that both could be waiting for you in one place: a newly built home. While many buyers are skipping over new construction, it could actually be your best opportunity in today’s market. Let’s break down why.

New construction is making up a growing share of what’s on the market. In fact, according to the latest numbers from the Census and the National Association of Realtors (NAR), about 1 in every 5 homes for sale right now is brand-new. So if you’re only looking at older homes, you could be missing out on a big slice of available inventory.

And here’s the kicker: with more new homes sitting on the market, builders are getting motivated — and competitive. That means they’re offering serious buyer incentives.

Price Cuts Are Happening

Buddy Hughes, Chairman of the National Association of Home Builders (NAHB), puts it plainly:

“Nearly 40% of home builders dropped their prices last month.”

That’s a sign builders are responding to what buyers can afford. They want to move inventory — and they’re willing to negotiate to do it.

So, builders may be more willing to negotiate price than you’d expect – and that means your dollar may go further if you buy a newly built home. Lean on your agent to see what’s available and what incentives builders are offering in and around your area.

Mortgage Rate Incentives Are Real

Here’s something most buyers overlook: builders can often help you score a lower mortgage rate. Many are offering rate buydowns — where they contribute to lowering your interest rate — just to make their homes more appealing.

According to Realtor.com data, in both 2023 and 2024, buyers of newly built homes were getting rates about half a percent lower than those purchasing resale homes. That’s real savings month after month.

Those savings can really add up, making a noticeable impact on your monthly budget.

If you haven’t found the right fit yet, consider exploring new construction. The home you’ve been searching for might already be available — just in a brand-new neighborhood.

Bottom Line

More inventory, room to negotiate on price, and the potential for lower mortgage rates — all of that makes new construction one of the few bright spots in today’s housing market. With so many builders offering attractive incentives, it's a window of opportunity buyers shouldn’t ignore.

If you haven’t taken a serious look at newly built homes yet, what’s stopping you?

Connect with a local real estate agent who knows the area and can help you explore what’s out there. The right home — and a better deal — might be waiting in a brand-new neighborhood.