T
he COVID-19 pandemic led to a surge in homebuying as interest rates plummeted, causing existing home prices to skyrocket while new construction struggled to keep up with demand. This shortage created an opportunity for new-construction homes to meet the need for modern amenities and energy efficiency.

    According to Realtor.com's senior economist Joel Berner, "There is a clear and present need for newly built homes to meet the demand for housing." To address this, Realtor.com has launched its Days of Deals, a limited-time browsing experience that highlights builder promotions and incentives from September 18 to October 6.

    In some regions, particularly the South and West, new-construction homes are priced lower per square foot than existing homes, making them attractive to budget-conscious buyers. In five states within these regions – South Carolina, North Carolina, Idaho, Arizona, and Florida – new-construction homes offer a more affordable option for homebuyers.

    The US still faces a shortfall of 7 million homes, with many homeowners reluctant to sell due to high mortgage rates. However, recent interest rate cuts have created an opportunity for new construction to alleviate the housing crunch. Builders are responding by offering incentives and focusing on smaller, more budget-friendly designs.

    In 2022, the median size of a new build was 2,128 square feet, but by 2024, it had shrunk to 1,965 square feet. Existing homes saw a slight increase in size during the same period. Builders are also using incentives such as cash-back options and rate reductions through preferred lenders to help with down payments.

    The South or West regions have the fastest-growing overall housing-stock levels for new construction. In January 2024, there were 20.3% more new builds on the market than in January 2020, and by August 2024, that level reached 30.3%. This surge in new construction has created opportunities for homebuyers, especially in states where new builds are not only more plentiful but also more affordable than existing homes.

    For prospective buyers interested in purchasing a newly built home, Realtor.com's Days of Deals offers a platform to check new-construction opportunities and promotions in their area.