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The article discusses the trends in new home prices in major U.S. cities over the past year. Despite a generally flat national median list price for new homes, prices have decreased in a significant number of metro areas due to increased builder concessions and a focus on smaller floorplans to meet subdued demand.
FULL STORY: Mapped: Cities Where New-Home Prices Are Falling Fastest
Key takeaways
- Prices for newly built homes have fallen in nearly a third of major U.S. cities, with the biggest annual drops seen in Little Rock, AR (-15.6%), Austin, TX (-8.5%), Wichita, KS (-7.9%), Jacksonville, FL (-7.8%), and Cape Coral, FL (-7.4%).
- New-home prices are rising in areas where supply is limited and demand is high, with notable increases in Syracuse, NY (+18.8%), St. Louis, MO (+16.8%), Los Angeles, CA (+16.1%), New Haven, CT (+13.7%), and San Francisco, CA (+11.2%).
- The price premium for new-construction homes over existing homes has hit an all-time low of 7.8%, with new homes now being cheaper on a square-foot basis nationally.
- Despite the national trend, many markets still have new homes priced higher per square foot than existing homes, especially in the Midwest and Northeast.
- The shift towards greater affordability is evident even in previously expensive markets, as new-home price declines are observed in active pandemic-era hot spots.
This summary has been generated with AI tools and edited by Realtor.com News & Insights editors. The full story, written and edited by Realtor.com News & Insights newsroom journalists, is linked at the top of the summary.