By Mary Prenon

Nearly 20 percent of newly constructed homes across the United States experienced price cuts in late 2025, surpassing those in the existing home sales market for the first time in recent history, according to a Feb. 12 Realtor.com report.

The report indicates that 18.3 percent of existing homes saw price reductions during the same period, with most of them concentrated in the South and West.

“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,” Realtor.com chief economist Danielle Hale, chief economist said in the report.

“We are seeing builders compete more directly on price to keep sales moving, even as overall new-home prices remain relatively stable.”

The seven states where the number of new construction listings experiencing price cuts exceeded that of existing homes are Nevada, Indiana, North Carolina, South Carolina, Minnesota, New Jersey, and Texas. In each, price cuts were more common among new construction than existing homes.

Hale noted that while new construction is generally more prevalent in the South and West, one Northeast and two Midwest locations also managed to make the list.

Nevada held the top spot, with 25 percent of new construction listings reporting price cuts, compared with 19.6 percent of existing home listings. Five of the seven states saw new construction price-cut shares above 21 percent, with only Texas and New Jersey at 19 percent. New Jersey had the lowest share of price reductions on existing homes, at 10.7 percent.

Realtor.com reported the median sales price of a newly constructed single-family home at $451,128 for the fourth quarter of 2025. These new homes were priced just 10.7 percent above existing homes. In the condominium and townhome market, however, new construction prices skewed 30.7 percent higher than existing condos and townhouses.

The report found that newly built attached homes are typically located in high-cost urban markets, while single-family construction is often located in more affordable, suburban areas. Almost 10 percent of all new condos nationwide are located in the New York and Miami metropolitan areas, with median prices upward of $1 million.

Conversely, single-family home construction is most prevalent in markets including the Texas cities of Dallas, Houston, and San Antonio, as well as Atlanta and Phoenix.

According to a January report by Realtor.com, the number of active listings grew by 10 percent compared with January 2025, indicating the 27th consecutive month of year-over-year inventory gains.

Similar to new construction patterns, inventory in the West experienced the largest growth by more than 12 percent compared to last year, and in the Northeast, the smallest at just 6.6 percent. Inventory also increased in 46 of the nation’s 50 largest markets, with the biggest advances in Seattle; Charlotte, North Carolina; and Washington, D.C.—all more than 26 percent.

However, nationwide, homes are taking slightly longer to sell. In January, the typical home spent 78 days on the market—five days longer than in January 2025. This is the twenty-second straight month for delayed home sales on a year-over-year basis.