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ew‑home listings now represent the smallest share of the market in four years, as builders trim output and the stock of existing homes swells. After a strong finish to 2024, 2025 has seen a slowdown in new construction while the inventory of resale homes has risen. Price cuts and incentives have failed to spur demand, prompting some developers to pause projects or cut staff.

    According to a Texas agent, buyers can still find discounts on new builds. A year ago, new construction was the only bright spot in a sluggish market, but recent data suggest that glow is dimming.

    The post‑pandemic boom in new‑home building is showing signs of fatigue. Demand is easing, incentives are deepening, and builder sentiment remains cautious. Redfin’s latest report notes that less than 27 % of single‑family homes for sale in August were newly built—the lowest share in four years. Rising existing‑home inventory and a surge in new listings have contributed to a slowdown in new‑home sales.

    While year‑over‑year sales of new homes are still higher, the lift comes mainly from aggressive discounts rather than genuine demand growth. Builders continue to offer mortgage‑rate buydowns, closing‑cost credits, and free upgrades, yet these perks have not translated into a buyer surge. Prices for new homes have stayed flat or dipped, even with incentives, and buyers hold the upper hand in markets like Texas, Utah, and Florida where supply is plentiful.

    Some builders are feeling the pressure. “The market is saturated with new construction, so much so that local builders are laying off workers—something I’ve never seen before,” said San Antonio‑based Redfin Premier agent Jesse Landin. “Builders are reluctant to start new projects because it doesn’t make financial sense in today’s buyer’s market.”

    U.S. Census data echoes this trend: housing starts for August fell 6 % year‑over‑year and were down 8.5 % from July. Builder confidence, measured by the National Association of Home Builders, dipped over the summer, edged up in October as mortgage rates fell, but remains well below historical levels.

    Despite the downturn, the new‑home sector remains a key indicator of market shifts and offers buyers an opportunity. Redfin researchers advise buyers to act now as the proportion of new homes in total inventory continues to decline. “Builders are desperate to sell,” Houston‑based Redfin Premier agent Roze Swartz said. “Prices are lower than usual, insurance costs are cheaper than for existing homes, and buyers have the power because supply outpaces demand.”