Old Homes Outpricing New Builds in 2025 Amid Market Shifts

The U.S. housing market has experienced an unusual trend where new homes are now selling for less than existing homes due to builder incentives, smaller home sizes, and market dynamics, a reversal of the long-standing pattern. This shift is driven by builders offering discounts to move inventory, smaller and more affordable homes, and demographic changes, but is expected to normalize as inventory levels adjust and builders realign their strategies.