New Home Price Cuts Hit 19% in Q4, Overtake Resale Market for First Time
In Q4 2025, 19.0% of newly built home listings saw price cuts, surpassing the 18.3% reduction rate in the existing-home market for the first time. Nevada led with 24.8% of new construction listings reduced, while the median new-home price rose just 0.3% year-over-year to $451,128.
1. New-Home Price Reductions Exceed Resale
In Q4 2025, 19.0% of newly built home listings had price reductions, overtaking the 18.3% reduction rate among existing homes for the first time as builders adjust to affordability pressures and elevated resale inventory.
2. Geographic Variations in Reduction Rates
Seven states—Nevada (24.8%), Indiana (23.3%), South Carolina (21.6%), Minnesota (21.6%), North Carolina (21.3%), New Jersey (19.9%) and Texas (19.0%)—recorded new-construction reduction shares above the 18.3% national rate, highlighting regional divergences in supply and demand.
3. Minimal Growth in Median New-Home Prices
The median listing price for a newly built home reached $451,128 in Q4, up just 0.3% year-over-year, while resale home prices remained flat, indicating builders’ reliance on discounts rather than list-price increases to spur sales.
4. Diverging Premiums for Condos vs Single-Family
Newly built condos and townhomes carried a 30.7% premium over existing attached homes, concentrated in high-cost urban markets, whereas new single-family homes were priced only 10.7% above existing houses, narrowing the premium gap amid expanding suburban construction.