New homes now cost less than existing ones in one-third of major markets
The national new-home discount contrasts with a 64.9% price-per-square-foot premium in New York.
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Rhea-AI Summary
Zillow (Z, ZG) found newly built homes cost less per square foot than existing homes nationwide in July 2026. The median was $205 for new homes versus $212 for existing homes. New homes sold at a discount in 17 of the past 19 months, reversing a pattern in which they carried a premium in 77 of 84 months from 2018 to 2024. Austin had a 19.3% new-home discount per square foot, followed by Raleigh at 14.4% and Tampa at 12.4%.
New homes made up 12.6% of U.S. sales in the 12 months ending July 2026, matching their 2019 share after reaching 16.7% in 2023. The share ranged from 37.1% in San Antonio to 2% in Hartford. U.S. new-home supply was 9.6 months in July 2026, versus 7.6 months two years earlier, while resale inventory remained 17.1% below its pre-pandemic level. Zillow linked the discount to greater builder competition where construction has been more active.
News Explained
The market-level data show that the national discount does not apply everywhere: new homes cost more per square foot in New York metro (a
Key Figures
- New-home price per square foot
- $205 per square foot
- National median, July 2026
- Existing-home price per square foot
- $212 per square foot
- National median, July 2026
- New-home supply
- 9.6 months
- July 2026; compared with 7.6 months two years earlier
- New-home share of sales
- 12.6%
- 12 months ending July 2026; same share as 2019, below the 16.7% peak in 2023
- Austin new-home discount
- 19.3%
- Price per square foot compared with existing homes
- New-home discount
- $12 per square foot
- Deepest discount, reported for June
- New-home premium
- 64.9%
- New York metro price per square foot compared with existing homes
Historical Context
-
Permits fell year over year as construction momentum slowed.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Sun Belt markets where building has boomed account for most of the markets where new construction offers the best value per square foot
- Newly built homes sell for a median of
$205 $212 - Many of the markets with the biggest discounts for new homes — as much as
19% less — are high-supply Sun Belt markets where builders have been most active, includingAustin ,Raleigh andTampa . - Nationally, new homes make up
12.6% of home sales over the past year. That share ranges from more than 1 in 3 sales inSan Antonio (37.1% ) andRaleigh (33.6% ) to2% inHartford .
This reverses the trend in recent years, when new homes sold for more per square foot than existing homes in 77 of 84 months from 2018 to 2024. The price-per-square-foot premium for new homes peaked at
Where construction has boomed and inventory is plentiful, discounts run deeper as increased competition gives builders more reason to offer incentives. Where inventory remains locked up and new construction faces more hurdles, builder offerings lean toward the higher end and carry a premium.
"New homes are the overlooked opportunity more buyers should be thinking about. Buyers who assume new homes are out of their price range may be surprised at what they find," said Kara Ng, senior economist at Zillow. "Where the most new homes have been built, buyers are in the best position to negotiate as sellers have a lot of other homes on the market to compete with. We often preach letting America build its way out of the affordability crisis, and these friendlier conditions are the payoff."
Supply is the primary driver. The
While the supply of new homes sits well above pre-pandemic norms, inventory of resale homes remains
The deepest discounts for new homes are often in the markets that have built the most, such as
New construction's footprint
Nationally, newly built homes account for
The share of new home sales over the past 12 months varies widely by market, ranging as high as
The path forward
The clearest path out of the affordability crisis is building more homes, as evidenced by affordability gains in many Sun Belt markets where construction has boomed. However, permitting has slowed, threatening progress that has been made this decade.
Zillow has joined Let America Build, a national campaign to bring attention to the local policies that would unlock more housing supply. Zillow has long supported policies that make it easier to build, including modernizing zoning to allow more types of housing, streamlining permitting, and expanding access to ADUs and manufactured homes.
For home shoppers considering newly built homes, Zillow makes it easy to explore available homes, communities, floor plans and features in one place. Home shoppers can discover new construction options, view rich listing details and connect directly with builders as they consider their next move.
|
Metro Area* |
New Construction |
Existing Home Price |
New Construction |
New Construction |
|
|
|
|
12.6 % |
12.6 % |
|
|
|
|
3.2 % |
4.1 % |
|
|
|
|
3.1 % |
6.9 % |
|
|
|
|
6.0 % |
4.5 % |
|
|
|
|
25.8 % |
18.9 % |
|
|
|
|
30.7 % |
24.0 % |
|
|
|
|
8.7 % |
13.5 % |
|
|
|
|
4.2 % |
7.3 % |
|
|
|
|
3.7 % |
7.1 % |
|
|
|
|
13.6 % |
19.2 % |
|
|
|
|
6.5 % |
9.8 % |
|
|
|
|
17.4 % |
18.0 % |
|
|
|
|
N/A** |
5.9 % |
|
|
|
|
11.4 % |
11.5 % |
|
|
|
|
3.5 % |
4.4 % |
|
|
|
|
12.6 % |
16.3 % |
|
|
|
|
10.1 % |
12.4 % |
|
|
|
|
3.0 % |
4.5 % |
|
|
|
|
13.6 % |
16.1 % |
|
|
|
|
10.7 % |
15.4 % |
|
|
|
|
5.0 % |
10.8 % |
|
|
|
|
3.9 % |
6.5 % |
|
|
|
|
19.8 % |
24.0 % |
|
|
|
|
21.9 % |
24.0 % |
|
|
|
|
37.1 % |
24.2 % |
|
|
|
|
14.9 % |
16.5 % |
|
|
|
|
16.4 % |
14.2 % |
|
|
|
|
3.4 % |
7.7 % |
|
|
|
|
6.8 % |
11.3 % |
|
|
|
|
31.1 % |
28.8 % |
|
|
|
|
14.9 % |
18.1 % |
|
|
|
|
10.5 % |
8.9 % |
|
|
|
|
10.2 % |
12.9 % |
|
|
|
|
13.4 % |
13.0 % |
|
|
|
|
2.1 % |
7.3 % |
|
|
|
|
5.9 % |
9.6 % |
|
|
|
|
26.3 % |
28.9 % |
|
|
|
|
8.8 % |
11.7 % |
|
|
|
|
6.0 % |
6.7 % |
|
|
|
|
22.6 % |
23.3 % |
|
|
|
|
4.9 % |
2.2 % |
|
|
|
|
17.9 % |
19.5 % |
|
|
|
|
33.6 % |
32.8 % |
|
|
|
|
N/A** |
9.5 % |
|
|
|
|
14.7 % |
17.5 % |
|
|
|
|
9.4 % |
6.3 % |
|
|
|
|
7.7 % |
25.4 % |
|
|
|
|
N/A** |
17.9 % |
|
|
N/A** |
|
2.0 % |
4.5 % |
|
|
N/A** |
|
N/A** |
N/A** |
|
|
|
|
11.9 % |
8.8 % |
|
*Table ordered by market size |
|
**Marked "N/A" because data for at least one month during the period is unavailable |
About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.
As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.
Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How do new-home prices per square foot compare with existing-home prices in Zillow's analysis?
In July 2026, newly built homes sold for a national median of $205 per square foot, compared with $212 per square foot for existing homes.