Think a brand-new home has to come with a big price tag? Think again.

Something pretty interesting is happening in the housing market right now. According to the Census and the National Association of Realtors (NAR), the median price of brand-new homes is actually lower than that of existing homes — the ones that have already been lived in.

Yep, you read that right. That brand-new, never-lived-in home might actually cost less than the one built 20 years ago just down the street. So if you’ve ruled out new construction thinking it’d be too expensive, here’s the thing—you might be missing out on some of the best deals in today’s market.

Why Are Newly Built Homes Less Expensive Right Now?

Builders Are Going Smaller on Purpose
Builders get that affordability is a big concern for buyers right now. So instead of focusing on large, high-priced homes that might sit on the market, they’re shifting gears and building smaller ones that more people can afford. In fact, according to the Census, the average size of new single-family homes has dropped quite a bit over the past few years (check out the graph below):

Builders Are Offering Price Cuts and Perks
In May, about 34% of builders dropped their prices, with an average cut of 5%, according to the National Association of Home Builders (NAHB). Why? They’re focused on selling the homes they’ve already built before starting new ones—and that means deals and incentives are definitely on the table.

On top of that, 61% of builders are throwing in extra perks—things like covering closing costs or helping buy down your mortgage rate. It’s all part of their strategy to make these homes more affordable and appealing so they can sell in today’s market.

Your Next Step? Ask Your Agent What's Available Near You

If you’re in the market to buy a home right now, make sure to chat with your agent about what builders are up to in your area. They can help you discover new home communities, score deals or incentives you might not know about, and even uncover hidden gems that aren’t on your radar yet.

Also, buying a brand-new home usually comes with a few different steps compared to buying one that’s been lived in before. That’s why having your own agent is such a big deal. They’ll help you navigate the details, look out for your best interests, handle negotiations, and make sure everything goes as smoothly as possible