Builders Continue to Cut Prices, Offer Discounts on New Homes

Image Courtesy of Homes.com

In response to a cooling housing market, a record 41% of homebuilders reported cutting prices in November 2025, marking the highest percentage since the pandemic began.

 

The average discount offered was 6%, consistent with recent trends.

 

Additionally, 65% of builders utilized sales incentives such as mortgage rate buydowns and funds toward upgrades and closing costs to entice hesitant buyers.

 

These strategies aim to address affordability concerns exacerbated by high mortgage rates and escalating home prices.

 

Notably, the price premium for new construction compared to existing homes dropped to a record low of 7.8% in the second quarter of 2025.

 

This narrowing gap makes newly built homes more attractive to buyers seeking value.

 

In regions like the South and West, where new home supply has increased, price reductions are more prevalent.

 

For instance, in Austin, Texas, builders have slashed prices by up to $75,000 on move-in ready homes.

 

Similarly, in Atlanta, discounts range from $25,000 to $100,000, with additional incentives like mortgage rate buydowns and free design upgrades.

 

These aggressive pricing strategies reflect builders' commitment to promoting homeownership and adapting to current market conditions.

 

As the housing market continues to evolve, prospective buyers may find increased opportunities to purchase new homes at more affordable prices.