More homebuyers are turning to newly constructed properties this year, driven not just by a desire for modern amenities but by the compelling financial incentives builders are offering. New home sales have reached their highest levels in more than two years, reflecting a pronounced shift in buyer priorities within the current real estate market.
Builders are offering highly-competitive incentives to prospective buyers, contributing to a notable surge in new home sales—now at their highest levels in more than two years (see graph below):
Why Builders Are Throwing in Perks
There are more newly built homes for sale right now than there have been in years. And as a buyer, that can help you in two ways. It gives you more options to choose from on the market, and it motivates builders to sell their inventory before they build more.
That’s exactly why more buyers are scoring incentives like these:
- Mortgage rate buydowns to shrink your monthly payment
- Price cuts that make homeownership more attainable
- Help with closing costs and even upgrades in some communities
Builders have stepped up their efforts to attract buyers, introducing incentives such as mortgage rate buydowns, price reductions, and assistance with closing costs and upgrades. These offerings are widespread, with nearly 60% of new home communities providing incentives for to-be-built homes, and more than 75% extending similar benefits to quick move-in properties. Leading analysts, including Nick Gerli, founder of real-estate analytics platform Reventure App, note that builders have reduced prices by 13% from peak values and are layering additional mortgage rate benefits on top of these price cuts.
“. . . builders are adjusting to the realities of the current housing market. They’ve cut prices 13 percent from peak, and are giving generous mortgage rate buydowns on top of that.”
Builders are clearly motivated to secure sales, creating opportunities for buyers to negotiate not only more favorable purchase prices but also potentially reduced mortgage rates. For those previously priced out of the market, these enhanced incentives and discounts may provide renewed access to homeownership.
You Have More Brand-New Options Than Normal
Since there are more new homes on the market than usual, that gives you more options than you’ve had in recent years as builders seek to move existing inventory before beginning new projects. Whether you’re looking for something turnkey or want to personalize a build, odds are there’s more available near you than you may realize.
Even though the number of new homes for sale is up throughout the country, there are pockets where you have an even better chance to find a better price. Census data show that the South and West regions have seen particularly robust growth in new home availability, creating especially favorable conditions for buyers in those areas (see graph below):
Expanding Inventory in Florida
New home inventory throughout Florida has grown sharply this year, with more than 127,000 units available—a 24.5% increase over 2024. New construction now accounts for about 16.4% of active listings in Florida, down slightly from its peak in 2023 but still representing a large share of available inventory.
For Sarasota new construction uxury home buyers, there are 302 active new construction listings over $1 million – 18% of all active listings over $1 million.
Limited-Time Opportunity
This opportunity won’t last forever. Recent statistics indicate that builders are slowing down new construction in response to high inventory levels. As Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains:
“The slowdown in single-family home building has narrowed the home building pipeline. There are currently 621,000 single-family homes under construction, down 1% in July and 3.7% lower than a year ago. This is the lowest level since early 2021 as builders pull back on supply.”
Moving forward, the number of new options may start to shrink as builders focus more on selling what’s already built before they add more.
Bottom Line
With builders cutting prices and maybe even helping buyers get a lower monthly payment, that’s not something to overlook.
Given the complexity and variability of builder incentives, engaging with a dedicated real estate agent is highly recommended. A knowledgeable agent can compare offers across communities, negotiate on your behalf, and ensure you secure the most advantageous deal.
