Builders discount more but keep prices flat while resale values slip

"The median listing price for new-construction homes came in at $449,373 in Q1 2026, essentially flat with a year earlier. Existing-home prices fell 0.9% year over year to $390,550, widening the national new-construction premium to 15.1%, up from 14% a year ago."

"For the second straight quarter, new homes on the market recorded a higher rate of price reductions than existing homes, the report said. That pattern, paired with flat overall new-home pricing, suggests builders are listing high and using cuts to find the market rather than allowing inventory to stagnate."

"For builders and lenders, that stability in the new-home segment stands in contrast with volatility in the resale market, even as construction firms face higher labor and materials costs and a buyer pool squeezed by mortgage rates and affordability constraints."

New-construction homes remain significantly more expensive than existing properties, with a median listing price of $449,373 compared to $390,550 for existing homes in Q1 2026. The new-construction premium widened to 15.1% from 14% a year prior, despite builders implementing price reductions and concentrating development in suburban areas. New homes account for 19.3% of for-sale listings, with builders using price cuts to manage inventory rather than allowing stock to stagnate. On a price-per-square-foot basis, new construction commands $217 compared to $216 for existing homes, reversing a 2025 trend. Nearly 80% of new homes for sale are located in suburban markets, reflecting builders' strategic focus on suburban development amid weaker demand and affordability constraints.

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