Why More Homebuyers Are Choosing New Construction Now

A noticeable shift is happening in today’s housing market: more buyers are gravitating toward new construction. It’s not just for the sleek designs or updated features — it’s because builders are rolling out meaningful incentives. Those savings are motivating buyers, and it shows — new home sales have climbed to their highest point in more than two years (see graph below).

Why Builders Are Offering Extra Incentives

Right now, there are more new construction homes on the market than we’ve seen in years. For buyers, that means two major advantages: more choices when shopping and more motivation from builders eager to move inventory before starting their next projects.

That’s why so many buyers today are landing incentives such as:

• Mortgage rate buydowns to lower monthly payments
• Discounted prices that put ownership within reach
• Assistance with closing costs — and in some cases, upgraded features

The best part? Many builders are rolling out these perks right now. Zonda reports that nearly 60% of new home communities are offering incentives on to-be-built homes, and more than 75% are doing the same for quick move-ins — homes already completed and ready for buyers. As housing analyst Nick Gerli notes:

"Builders are responding to today’s market by cutting prices about 13% from their peak and layering in mortgage rate buydowns on top of that."

The bottom line: builders are motivated to sell, which means you could land a better price and a lower mortgage rate. For buyers who’ve felt priced out, this could be a way back in.

More Brand-New Homes to Choose From

With more new construction hitting the market, buyers today have more choices than they’ve had in years. Whether you want a move-in-ready home or the chance to customize a build, there’s likely more inventory near you than you realize.

And while new home supply is up nationwide, certain areas are seeing an even bigger surge — which could mean better opportunities for pricing. Census data shows where the largest increases in new builds are happening (see graph below).

Both the South and West currently have higher levels of new home inventory, which may make builders in those regions more open to negotiations. But this window of opportunity won’t last long. Builders are already starting to slow production to avoid oversupply. As Robert Dietz, Chief Economist at the National Association of Home Builders, points out:

"Single-family construction has been pulling back, with 621,000 homes under construction — down 1% from July and nearly 4% lower than last year. That’s the lowest level since early 2021, as builders scale back supply."

The takeaway? Inventory could tighten again soon, making now one of the best times in years to buy a new home.

Bottom Line

With builders lowering prices and, in many cases, even helping buyers secure a more manageable monthly payment, this is an opportunity that shouldn’t be overlooked.

The smartest move you can make is to connect with an agent before you begin your search. By doing so, you’ll have a professional on your side who can compare incentives across multiple builders, break down the details, and negotiate on your behalf. That way, you’re not just finding a home — you’re making sure you lock in the very best deal available in today’s market.