Why New Construction Homes Might Be More Affordable Than Resale in 2025

If you've been thinking about buying a home in Tampa Bay but assumed a new construction home would be out of your budget — it may be time to take a second look.

According to the latest data from the U.S. Census Bureau and the National Association of REALTORS® (NAR), the median price of newly built homes ($403,600 in March) is now lower than the median price of existing homes. That’s a surprising shift — and it could mean new construction is not only within reach, but potentially the better deal.

Let’s break down what’s driving this trend and how it could benefit you as a homebuyer.

Builders Are Focusing on Affordability

To meet today’s affordability challenges, many homebuilders are prioritizing smaller, more cost-efficient homes that align with buyer budgets. Data from the National Association of Home Builders (NAHB) shows:

• New home sales are up 33% year-to-date for homes priced under $300,000

• Up 28% for new homes priced between $300,000 and $400,000

This reflects a major shift away from the larger, luxury-focused builds of previous years — and toward homes that offer smart layouts, energy efficiency, and practical pricing that directly address today’s affordability challenges.

Inventory Is High — and That Works in Your Favor

Unlike the resale market, which still suffers from tight inventory (just a 4-month supply), the new construction market has about an 8-month supply of available homes. That gives builders extra motivation to sell what’s already built — and they’re using incentives to do it.

Builder Incentives Are Helping Buyers Save

To stay competitive, builders are offering a range of buyer perks, including:

• Mortgage rate buydowns

• Closing cost assistance

• Free design upgrades

• Price reductions (with an average discount of 5%, according to NAHB)

In some cases, buyers can save thousands upfront — or secure a lower monthly payment thanks to temporary or permanent rate buydowns.

Final Thoughts

The idea that new construction is always more expensive than resale is being challenged by real market data. In 2025, builders are adjusting to what today’s buyers can afford — and they’re offering quality homes at competitive prices.

If you’re exploring your options in the Tampa Bay housing market, it’s worth taking a closer look at new builds. With flexible pricing, builder incentives, and a growing inventory, new construction might not just be more affordable — it might be the smarter move.