Newly built homes are now selling for less per square foot than existing homes on average nationwide and in roughly one-third of major U.S. housing markets, a new analysis from Zillow suggests.
New homes sold for a median of $205 per square foot in July, compared with $212 for existing homes, Zillow said on Sept. 29.
That marks a sharp reversal from recent years. From 2018 through 2024, newly built homes carried a higher price per square foot than existing homes in 77 of 84 months. The premium peaked at $25 per square foot in November 2022.
In 17 of the past 19 months, however, new homes have sold at a discount as builders cut prices and offered more incentives to attract buyers….