For the First Time in Recent History, New Home Price Reductions Outpace Existing Homes: Realtor.com® Report Finds

Rhea-AI Summary

NWS / Realtor.com finds that in late 2025 nearly one in five newly built homes saw price reductions, overtaking resale cuts (18.3%) for the first time in recent history.

Key metrics: seven states led higher new-construction cuts; median new-home listing was $451,128 (up 0.3% YoY); newly built condos carried a 30.7% premium versus existing attached homes.

Positive

• New construction price cuts outpaced resales at ~20%
• Newly built condos/townhomes show a 30.7% premium over existing attached homes
• Newly built single-family homes priced 10.7% above existing single-family homes

Negative

• Nearly 1 in 5 new homes had price reductions, signaling builder price pressure
• Median new-home listing rose only 0.3% YoY to $451,128, showing weak topline growth
• Seven states show higher new-construction cuts than national level, indicating regional inventory stress

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Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey and Texas Lead the Way When it Comes to Share of Price Reduced New Construction

AUSTIN, Texas, Feb. 12, 2026 /PRNewswire/ -- Nearly one in five new homes saw price cuts in late 2025, overtaking the resale market for the first time in recent history, according to Realtor.com^® Quarterly New Construction Insights. In the same quarter, the share of existing homes with cuts was 18.3%, signaling a shift in how builders and existing-sellers are competing for homebuyers. Price reductions in the existing-home market are generally concentrated in the South and West, and the data reveal that new construction homes also follow this geographic pattern, with some exceptions. Although they are in the Midwest and Northeast, Indiana, Minnesota, and New Jersey have more price reductions on newly-built homes than the national level.

"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."

There are seven states, Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey and Texas, where the rate of price reductions is higher than the national level (18.3%). In these states, there are more price reductions among new construction listings than existing listings, though most of them have relatively high levels of existing home price reductions as well. Four of them are in the South or West, where new construction activity is highest and general home inventory is elevated, but the other three (Indiana, Minnesota, and New Jersey) truly stand out. Four of these are situated in the South or West, regions characterized by high levels of new construction and elevated inventory. Indiana, Minnesota, and New Jersey represent the three notable exceptions.

State	New Construction Price Reduced Share	Existing Home Price Reduced Share
Nevada	24.8 %	19.6 %
Indiana	23.3 %	22.1 %
South Carolina	21.6 %	17.4 %
Minnesota	21.6 %	17.4 %
North Carolina	21.3 %	19.1 %
New Jersey	19.9 %	10.7 %
Texas	19.0 %	17.5 %

In the fourth quarter of 2025, the median listing price for a newly built home was $451,128, up just 0.3% from a year earlier, while resale home prices were essentially flat. But those topline numbers mask a widening divergence by property type. Newly built condos and townhomes carried a substantially higher premium (30.7%) over existing attached homes, while newly built single-family homes were priced just 10.7% above existing single-family homes—a gap that has been shrinking.

In Key Metros, Condos Can Carry A Price Premium Compared to Single Family Homes

This report also explored newly built condos compared to newly built single family homes and found newly built condos and townhomes cost more than newly built single-family homes nationwide. This finding is due largely to geography and where new condos are being built.

Newly built attached homes are concentrated in high-cost urban markets, while new single-family construction is expanding in more affordable metros, particularly across the South and West. Nearly 10% of all new condos for sale nationwide are located in the New York and Miami metropolitan areas, where median prices exceed $1 million. Meanwhile, new single-family construction is dominated by markets such as Houston, Dallas-Fort Worth, San Antonio, Atlanta, and Phoenix, where prices are closer to the national median and supply is more plentiful.

"What we're seeing is a market where single-family new construction is filling an affordability gap that resale homes increasingly can't," said Joel Berner, senior economist, Realtor.com^®. "Condos are still playing an important role in certain markets, but they're skewing more luxury, while detached homes are doing more of the work when it comes to expanding supply."

Methodology
Realtor.com housing data as of December 2025. Listings include the active inventory of newly built single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com. Realtor.com new construction data history goes back to January 2023.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Mallory Micetich, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/for-the-first-time-in-recent-history-new-home-price-reductions-outpace-existing-homes-realtorcom-report-finds-302685747.html

SOURCE Realtor.com

FAQ

Why did new-home price reductions exceed existing-home cuts in Q4 2025 for NWS?

Because builders increased discounts to spur sales amid higher inventory and affordability pressure. According to Realtor.com, nearly one in five new homes cut prices in late 2025, exceeding the 18.3% share of existing-home reductions.

Which states had the highest share of price-reduced new construction according to Realtor.com (NWS)?

Seven states led higher new-construction reductions: Nevada, Indiana, South Carolina, Minnesota, North Carolina, New Jersey, and Texas. According to Realtor.com, each had a new-construction reduced-share above the 18.3% national level.

How did median new-home listing prices change in Q4 2025 for NWS data?

Median new-home listings were essentially flat, rising modestly. According to Realtor.com, the median newly built home was $451,128 in Q4 2025, up just 0.3% from a year earlier, indicating limited price momentum.

What premium do newly built condos carry over existing attached homes in Realtor.com’s Q4 2025 report?

Newly built condos/townhomes carried a substantial premium of 30.7% over existing attached homes. According to Realtor.com, this reflects concentration of new attached inventory in high-cost urban metros like New York and Miami.

How do newly built single-family prices compare with existing single-family homes in late 2025 (NWS)?

New single-family homes were about 10.7% pricier than existing single-family homes. According to Realtor.com, that premium has been shrinking, driven by expanding single-family construction in more affordable Sun Belt metros.

What does the rise in new-construction price cuts imply for housing supply and builders per Realtor.com (NWS)?

It implies builders are competing more aggressively on price to move inventory amid elevated supply and affordability constraints. According to Realtor.com, increased reductions reflect builders responding to higher existing-home inventory and buyer sensitivity.