New Construction Homes Cost $52K More Than U.S. Average, Widening Affordability Gap
Event summary
- Nationally, median new construction home price is $409,565, $52,565 higher than the median for all homes ($357,000).
- New home prices have risen 21.6% over the past five years, outpacing the 13.3% increase for all homes.
- New construction's share of the market has shrunk to 15% in 2025 from 20% in 2023.
- Miami has the largest premium for new homes at $600,000, while McAllen, Texas, has the most affordable new homes at $263,000.
The big picture
The data underscores a growing divide between new and existing home prices, driven by higher construction costs and supply chain issues. This trend is reshaping the housing market, with new construction increasingly targeting higher-end buyers even in affordable metros like Cleveland. The shrinking share of new homes in the market suggests broader challenges in meeting demand, particularly for affordable housing.
What we're watching
- Affordability Crisis
- How the widening price gap will impact first-time homebuyers and lower-income households.
- Regional Disparities
- Whether high-premium markets like Miami and Los Angeles will see a shift in demand toward more affordable metros.
- Supply Constraints
- The pace at which new construction can meet demand, given the shrinking share of newly built homes in the market.
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