For home shoppers who have been holding out for better prices, now might be the time to start looking.
See more: The 2025 Housing Market: What it Means for New Home Buyers
Prices in many of the country’s most popular markets – including markets in Florida, California, and Texas – have fallen significantly.
“New-home prices can come down for one of two reasons,” says Ali Wolf, chief economist for NewHomeSource.
See more: Here’s How U.S. Tariffs May Affect Home Prices in 2025
Reason one: A builder begins building communities further away from city centers. "Those shifts alone could lower prices without home prices actually falling," said Wolf.
Reason two: Market response.
“If affordability gets stretched too much or consumer confidence weakens and buyer demand slows, home prices can come down as builders try to ‘find the market,’” Wolf says.
See more: Creative Ways First-Time Buyers Are Securing Homes in 2025
What’s Happening with the New Home Market in 2025
According to April 2025 data from Zonda, several markets have seen prices fall considerably from their recent peaks, opening the door for:
More affordability/greater buying power
Better deals
While homes in many markets remain expensive, the recent drops signal a real shift in buyer leverage.
“You will find some good value in the new home market today, especially compared to resale properties,” said Wolf.
The latest data reveals several trends and patterns emerging related to pricing in the new-home market:
Florida’s Price Declines: In 50 metros analyzed by Zonda, five of the top 10 markets with the biggest price drops were in Florida:
Jacksonville (-22.3%)
Naples (-21.9%)
North Port (-19.2%)
Cape Coral (-14.2%)
Miami (-13.7%)
San Francisco’s Double Dip: New-home prices in San Francisco were 18.2% below their peak of approximately $1.2 million. It was also the lone market where April 2025 prices were below 20219 levels (down 15.1%).
Cooling Pandemic Hotspots: Salt Lake City (-15.4%) and Austin (-14.2%), which had significant booms in the pandemic, saw prices fall well below their peaks.
At the Peak: Philadelphia, San Jose, and Port St. Lucie were the only three markets analyzed to reach a new pricing peak in April.
San Jose also earned the distinction as the most expensive market analyze, with an average new-home price of $1.8 million.
Nearing the Top: Home prices in Orlando, Baltimore, Minneapolis, Nashville, and Los Angeles were all within 3% of the peak in April.
What Does This Mean for You?
The declines in prices mean that markets that may have felt out of reach for would-be buyers are now more accessible. At the very least, these markets now come with better terms.
Bottom line: For shoppers that have been on the fence, now may be the time for them to revisit areas they were previously priced out of and take advantage of builder incentives.
That said, urgency matters; these lower prices may not last. As the market adjusts, today’s opportunities could turn into tomorrow’s regrets.
More From NewHomeSource:
Home Prices, Interest Rates, and Inventory: 3 Key Trends for 2025 Buyers
Where Americans Are Moving Daily: Sunbelt Still Hot, But Migration Is Slowing
5 Ways New Home Construction is Powering the 2025 Housing Market
Tariffs and the New Home Market: What Homebuyers Should Watch For in 2025
