06/01/2026
Here's something that would have sounded crazy a few years ago: brand-new homes are now cheaper than used ones.
For the fourth quarter in a row, the median price of an existing home nationally ($404,600) is higher than a newly built one ($403,200). That gap may seem small, but the trend tells a bigger story. New home prices dropped nearly 5% over the past year, while resale prices inched up slightly.
So what's going on? Builders have been hustling to make homes more affordable. They're building on smaller lots, shrinking floor plans, and offering serious buyer perks: think covered closing costs, price cuts, and deals that lower your mortgage rate. Meanwhile, many existing homeowners are holding tight to the ultra-low rates they locked in during the pandemic and refusing to budge much on price, which keeps supply low and prices stubbornly high.
Where you live matters too. The South has the most affordable new homes, with a median price around $361,800. Regional differences can be dramatic. In some areas, new homes cost significantly more or less than existing ones.
The bottom line: if you've been assuming a new home is automatically out of your budget, experts say it's worth a second look. Builders are competing hard for buyers right now, and that could work in your favor.
