The premium for buying new is fading fast. The price gap between new and existing homes just hit a record third-quarter low, and builders are doubling down with incentives that lower mortgage rates and reduce upfront costs.

New-construction homes appear to have the edge in the South and West in particular, where the price per square foot is lower for a new build than an existing home, according to the New Construction Insights Q3 2025 report from Realtor.com® .

“Builders have a good amount of spec inventory that they are trying to move right now as the market cools down both seasonally and in terms of price and sales growth,” says Joel Berner, senior economist at Realtor.com. “Quick move-in inventory is readily available, and builders are cutting prices and offering incentives

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