Realtor.com: New‑home builders increasingly use price cuts, new builds see more reductions than resales

Realtor.com analysis finds builders increasingly use discounts to move inventory

Price Cuts Become Tool for New-Home Builders

Nearly one in five newly listed homes sees a price reduction in late 2025, Realtor.com reports, marking the first time new construction overtakes the resale market on this measure. The company’s Quarterly New Construction Insights shows 19% of new listings receive cuts versus 18.3% for existing homes, a shift that signals builders are responding to affordability pressures and elevated resale inventory by competing more directly on price.

Realtor.com chief economist Danielle Hale says builders are clearly adjusting strategies amid a softer demand environment. While median new‑home asking prices remain relatively stable, the uptick in reductions reflects an increasing willingness to use discounts to accelerate sales and clear backlogs. The report frames the trend as a broader strategic change rather than a uniform price collapse, with builders calibrating incentives by market and product type.

Industry watchers say the move to price competition is already affecting how builders manage incentives, permitting plans and the pace of closings. Selling through standing inventory becomes a higher priority as developers balance the cost of carrying projects against the need to maintain sales velocity, pushing some to match or undercut nearby resale listings.

Regional spread and price stability

Realtor.com’s data show higher cut rates on new builds than resales in seven states: Nevada (24.8% new vs 19.6% existing), Indiana (23.3% vs 22.1%), South Carolina (21.6% vs 17.4%), Minnesota (21.6% vs 17.4%), North Carolina (21.3% vs 19.1%), New Jersey (19.9% vs 10.7%) and Texas (19.0% vs 17.5%). Four of those are in the South or West where new‑build activity and inventory are elevated, while Indiana, Minnesota and New Jersey represent notable Midwest and Northeast exceptions, underscoring a geographically widening use of price adjustments.

The report also shows median asking price for a newly built home at $451,128 in Q4 2025, up only 0.3% year‑on‑year, which Realtor.com portrays as modest price stability amid regional divergence. Observers expect builders to continue refining pricing and incentive packages into early 2026 as they compete with stronger resale inventories and seek to preserve sales momentum.