Why a New-Construction Home May Cost Less Than You Expect

Homebuilders are reducing prices and offering incentives, so buyers should reconsider newly built dwellings.

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Updated · 5 min read
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Written by Holden Lewis
Senior Writer/Spokesperson
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Edited by Mary Makarushka
Assigning Editor

For home buyers who struggle to find suitable existing homes for sale, it may be time to look at new construction. 

Homeowners continue to hang onto their low-rate mortgages rather than selling, keeping existing homes off the market. Meanwhile, homebuilders have hundreds of thousands of unsold dwellings in their inventories. And many homebuilders are offering incentives to prod buyers into signing purchase contracts: According to the National Association of Home Builders, 57% of builders offered some kind of incentive in February.

Even first-time buyers, who tend to have lower housing budgets than move-up buyers, could benefit from shopping where new houses or condominiums are going up. Believe it or not, a few builders pursue first-timers. D.R. Horton is one; it reported that 65% of homes it sold in 2022 cost less than $400,000.

Understanding how new-construction deals work differently from existing home sales can help you find the savings hiding behind the sticker price.

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