New Home Discounts Surge as Builders Seek Buyers Under $300,000

Homebuilders across the U.S. are slashing prices on new constructions, with average discounts exceeding 12% in key markets, making homes under $300,000 more accessible amid persistent affordability challenges.

Homebuilders are aggressively reducing prices on newly constructed homes, particularly in the sub-$300,000 segment, as inventory remains high and demand lags. In December 2025, the average discount on new homes rose to 12.3%—up from 7.8% in early 2024—according to a national analysis of sales data. This marks one of the steepest discount increases in over a decade, driven by builders aiming to reduce unsold inventory and improve cash flow. The trend is most pronounced in secondary markets such as Charlotte, NC; Raleigh, NC; and Austin, TX, where builders are offering incentives like $25,000 in closing cost assistance, free upgrades, or deferred interest programs. In Charlotte, one major developer reported selling 87% of its new homes in the $275,000–$299,000 range at or below list price in the final quarter of 2025. These pricing adjustments come as the national median home price reached $431,000 in December 2025, up 3.6% from the prior year, while mortgage rates remain elevated at 7.2% on average. Despite these headwinds, the new construction market has seen a 14% increase in sales volume since September 2025, suggesting that aggressive pricing is resonating with first-time and move-up buyers. The shift benefits consumers seeking affordability, particularly in regions where resale homes have become increasingly out of reach. However, analysts caution that sustained discounts could signal oversupply or weakening confidence in the housing market’s long-term trajectory.