If you are currently shopping for a home, you may have noticed an interesting trend. There are more homes on the market compared to this time last year, yet many buyers still feel uncertain.
The layouts may be awkward, or the homes may need updates. Sometimes everything just starts looking the same. That is why more buyers are now turning their attention to new construction homes. Right now, those homes offer some of the best deals available.
The reason behind this is simple. Builders are currently sitting on more finished homes than they typically would at this time of year. These are homes that are move-in ready but have not yet been sold. Since builders are running a business, they do not want that inventory just sitting.
Unsold homes cost money and slow down future builds. To keep things moving, builders are offering attractive incentives that work in your favor as a buyer.
Lance Lambert, who is the co-founder of ResiClub, recently said that in markets where unsold inventory has increased, many builders are holding back on new speculative construction and instead are offering bigger discounts or buyer incentives to reduce their existing inventory.
Builders Are Offering the Most Incentives in Five Years
According to fresh data from the National Association of Home Builders, about 66 percent of builders were offering sales incentives as of August. That is two out of every three builders, and the highest percentage seen in the past five years. It is also the biggest spike in builder incentives so far in 2025.
This means there is more leverage for buyers now than there has been in a long time. Builders are motivated to strike deals quickly, and they are sweetening offers to make that happen. If you are a buyer, this is one of those rare moments where the timing and the conditions are both in your favor.
Incentives and Price Cuts Are Now Common
One of the most powerful incentives that builders are offering is a price cut. According to the same NAHB data, nearly 40 percent of builders are now cutting prices to attract buyers. The average price reduction is around five percent. That may not sound dramatic at first, but for a home priced at 500 thousand dollars, that equals a 25 thousand dollar discount. That type of savings can be the difference between settling for something that is almost right and buying the home that is exactly right.
Aside from price drops, builders are also rolling out other generous incentives. These include things like mortgage rate buydowns, which help reduce your interest rate and monthly payments. Some are offering assistance with closing costs, which lowers the amount of cash you need up front. There are also deals where builders include high-value upgrades like smart home technology, granite counters, premium flooring, or landscaping features, all without raising the price.
Realtor platforms report that many builders are now very willing to negotiate in order to get their homes sold. If the builder is not offering a price cut, you may still get the benefit of better terms on financing or other financial perks.
Why New Construction Homes Are Even More Appealing Today
Beyond the discounts and incentives, there are many reasons why buyers choose new construction homes over existing ones. A brand-new home often comes with modern features, larger layouts and fewer maintenance headaches. Builders are designing these homes with current buyer preferences in mind. You get things like open-concept living areas, larger kitchens, and better storage.
Energy efficiency is also a big win. New construction homes are typically built to higher energy standards, which means lower utility bills from day one. Appliances, insulation windows, and HVAC systems are all more efficient, which can lead to significant savings over time.
Buyers also appreciate the smart home features now included in many new builds. From smart thermostats to advanced home security systems, these extras make life more convenient and modern right from the start.
Perhaps most importantly, you can often personalize a new home. Depending on how far along the build is, you may have the opportunity to choose design finishes, floor types, cabinetry, and more. This lets you get exactly what you want instead of trying to make an older home fit your lifestyle.
Make Sure You Bring Your Own Agent
It is important to know that builder representatives work for the builder. Their job is to protect the interests of the company that built the home, not you, the buyer. If you walk into a builder’s office without your own real estate agent, you might be missing out on key savings or favorable contract terms.
A qualified buyer’s agent can help you evaluate what incentives are truly valuable. They can also run real cost breakdowns and help you spot whether the savings are being offset in other areas. Most importantly, they will handle negotiations and ensure you get the best possible deal while protecting your rights throughout the process.
Your agent works for you, not the builder, so you have someone in your corner helping you avoid common pitfalls and making sure you benefit from everything the builder is offering.
What This Means for Today’s Homebuyer
The combination of higher inventory builder incentives and price reductions creates an ideal market for anyone shopping for a new home. If you have been struggling to find the right home, now is the time to consider new construction. Incentives are at the highest point in half a decade, and builders are actively looking to close deals fast.
You could walk away with a home that is larger, newer, more energy efficient, and more customized than anything else in your price range. And with significant price cuts and financial perks, it is more achievable than many buyers realize.
If your current home search has left you feeling stuck or uninspired, then it is time to look at what new construction homes can offer. With a surge in builder incentives, active price reductions, and additional perks being included, this is one of the best windows in years for buying a brand-new home.
Want to see what builders are offering in your area and how much you could actually save? Let us connect and take a closer look together.
