Builders Continue to Cut Prices, Offer Discounts on New Homes
Homebuilders employ aggressive pricing and incentives to attract buyers amid market challenges

Larry Fleckinger
Jan 16, 2026
Homebuilders are responding to a sluggish housing market by offering unprecedented price cuts and incentives to attract buyers.
In November 2025, a record 41% of builders reduced home prices, with typical discounts holding at 6%.
Beyond price cuts, 65% of builders rolled out perks, including mortgage rate buydowns and credits for upgrades or closing costs, to help homebuyers cope with high interest rates and elevated home prices.
This wave of discounts has narrowed the price gap between new and existing homes to a record-low 7.8%, making new construction far more competitive for those seeking value.
The trend is especially strong in the South and West, where home supply has grown.
In Austin, Texas, some new homes are now up to $75,000 cheaper, while Atlanta builders are slashing prices and sweetening deals with bonus upgrades.
These shifts could mean greater opportunities for buyers ready to move.












































