August 05, 2025

Prices are high. Rates are stubborn. And it can feel hard to find a home you love. But new construction might be the answer to all three of those headaches.

If you’re a homebuyer right now, you know the market comes with challenges. High prices, limited inventory, and steep mortgage rates can make the process feel overwhelming. But there’s good news: newly built homes might offer you a way forward.

Let’s break down the top three advantages of buying new construction in today’s market:

1. You Have More Options

Inventory has been tight for months, but new construction is easing some of that pressure. In fact, roughly 1 in 5 homes on the market today is a newly built property—a significant increase from historical norms.

This means if you’ve only been looking at resale homes, you could be missing out on a large portion of the available inventory. Expanding your search to include new builds can open up more possibilities and reduce the stress of limited options.

2. You Could Get a Better Price Than You’d Expect

Builders are highly motivated to sell their inventory, especially with more new homes available. That motivation is translating into savings for buyers. According to recent data:

38% of builders cut prices in July to attract more buyers.

In addition to price cuts, many builders are also offering incentives like upgrades, paid closing costs, or interest rate buydowns. These perks can significantly reduce your out-of-pocket expenses or monthly mortgage payment.

3. You May Get a Lower Mortgage Rate

One of the biggest concerns for buyers today is high interest rates. But here’s an edge new construction can offer: buyers of newly built homes often secure mortgage rates about half a percent lower than those buying existing homes.

Why? Builders often work with preferred lenders and can offer special financing incentives to make their homes more appealing. In a market where every fraction of a percent matters, this can add up to thousands of dollars in savings over the life of your loan.