Today’s new construction homes become tomorrow’s housing market. Without affordable new construction, we find ourselves in a housing market marked by low inventory, high prices and bidding wars—and one where first-time homebuyers are often priced out.
The average price of a new construction home that sold in the three months through September1 was $374,000. Compared with existing homes, new construction homes sold at an average premium in September of $87,000.2
However, new home price growth has slowed throughout this year. New home prices are up 3.3 percent year over year, which is down from a growth rate of 5.3 percent in January. In contrast, existing home prices grew by 7.9 percent in September compared with 6.6 percent price growth in January.