Housing and Urban Development Secretary Scott Turner recently emphasized the need to ease regulations to increase housing supply. He also discussed the potential for utilizing underused federal land and responding to proposals for rent freezes.
In a positive turn for home buyers, the gap in affordability between newly constructed homes and existing ones has narrowed. Builders are keen to take advantage of an increase in demand by offering incentives. According to information from Realtor.com, the price per square foot for new homes is typically lower than for existing homes, particularly in the South and West.
These regions have a greater supply of new homes and more significant price reductions compared to the Northeast and Midwest, where new construction is less available. Senior economist Joel Berner mentioned that builders currently have an excess inventory they are eager to sell, especially as the market begins to cool. This situation allows many buyers to find quick move-in options and enjoy attractive incentives.
In the South, the median price per square foot for new homes is around $200, while it’s $292 in the West. For existing homes, these prices are $204 and $320, respectively. The analysis indicates that new homes are now more price-competitive and appealing, especially given the current focus on affordability among buyers.
Historically, those purchasing new homes have made larger down payments, but this trend is shifting. New home buyers recently put down about 15.7% of the purchase price, while buyers of existing homes contributed 17.8%. These easing conditions show that new construction is becoming more attainable, helping alleviate the burden of large financial commitments.
Remarkably, in the third quarter of 2025, about 15.1% of new home listings saw price reductions, reflecting a market that offers more options for buyers. In the South and West, reductions are especially common, indicating a shift in the market landscape.
Despite higher overall mortgage rates, new home buyers are benefiting from lower rates, making new builds more attractive. With an average mortgage rate of 5.27% for new home purchases—compared to 6.26% for existing homes—buyers find themselves with more favorable terms, helping them secure their dream homes amid rising costs.
Overall, the current housing market presents encouraging signs for potential buyers, particularly in regions with increased new construction and better price incentives.
