New vs. Old Homes: The State of New Construction in the U.S.
To meet the rising demand for housing in the U.S., new homes have to be built. But new construction comes at a steep price premium across most U.S. markets. Clever Real Estate examined data from Zillow to explore the cost and prevalence of new home construction in the U.S. and 100 of the largest U.S. cities.
What does buying a new home look like across the U.S.?
New construction accounts for 15% of the U.S. housing market and carries a premium over the typical home. At a median of $409,565 versus $357,000 for the typical home, the markup varies dramatically by city. In Miami, the gap balloons to $600,000.
New Homes in the U.S. Are $50,000 More Expensive
Newly constructed homes consistently cost more than typical homes. The U.S. median is $357,000, while new construction sells for a median of $409,565, $52,565 higher.
New construction homes have historically been more expensive, with a peak difference of $151,018 in December 2022, at the tail end of the pandemic housing boom when mortgage interest rates were at historic lows.
In the past five years, the median sale price of new homes has outpaced the increase for all homes, 21.6% vs. 13.3%. Prices for new construction, however, have decreased slightly over the past year while overall home prices have continued to rise (-3.9% versus 2%).
New homes comprise a small part of the U.S. housing market, at approximately 15%, down from 20% in 2023. Zillow reported 571,213 new construction home sales in 2025 out of more than 3.7 million home sales overall.
New Homes Cost $600,000 More in Miami
The largest difference in price between new homes and overall homes is in Miami, where new homes are $600,000 more expensive. Miami is followed by Los Angeles ($387,495), Cleveland ($366,350), and New York City ($337,792).
Miami, Los Angeles, and New York City are already expensive markets overall, with median home prices well above the $357,000 national median.
Cleveland, however, is an exception. At only $205,000, the median home price in Cleveland is well below that of the U.S. Yet a newly constructed home there costs a whopping $571,350. This points to a mismatch between Cleveland's existing housing stock and the new homes being built there.
In addition, new construction makes up just 3% to 4% of home sales in Miami, Los Angeles, and New York City. The low share suggests builders in these markets are targeting higher-income buyers rather than adding inventory at the median price point.
| Rank | City | All Homes Price | New Homes Price | Price Gap | New Homes Share |
|---|---|---|---|---|---|
| 1 | Miami, FL | $475,000 | $1,075,000 | $600,000 | 4% |
| 2 | Los Angeles, CA | $950,000 | $1,337,495 | $387,495 | 3% |
| 3 | Cleveland, OH | $205,000 | $571,350 | $366,350 | 2% |
| 4 | New York, NY | $650,000 | $987,792 | $337,792 | 3% |
| 5 | Milwaukee, WI | $302,500 | $619,950 | $317,450 | 5% |
| 6 | Boston, MA | $638,450 | $899,950 | $261,500 | 7% |
| 7 | Detroit, MI | $245,000 | $492,375 | $247,375 | 4% |
| 8 | Albany, NY | $319,300 | $556,150 | $236,850 | 7% |
| 9 | San Diego, CA | $880,000 | $1,098,900 | $218,900 | 3% |
| 10 | Kansas City, MO | $317,840 | $533,448 | $215,608 | 12% |
Only Four Cities Offer New Construction at a Cheaper Price
Our study analyzed 100 of the largest U.S. cities and found only four where new construction is priced cheaper than the local median home price. These cities are:
- San Francisco, California (-$85,000)
- Austin, Texas (-$72,041)
- Honolulu, Hawaii (-$67,298)
- Cape Coral, Florida (-$20,000)
Although new construction costs less, these cities aren't necessarily more affordable. New construction costs $995,000 in San Francisco compared with $1,080,000 for the typical home. That's still nearly $640,000 above the U.S. median.
In Honolulu, new construction costs $678,475 even after a "discount" of $67,000 off the city's $745,773 typical home price.
New construction makes up only 3% of home sales in San Francisco and 4% in Honolulu, too small a share to move the needle on affordability.
Austin and Cape Coral offer a slightly more affordable picture. New homes in Austin cost $370,959, which is $72,041 less than the overall median sale price of $443,000. In Cape Coral, new homes cost $350,000, which is $20,000 less than the overall price of $370,000.
Unlike in San Francisco and Honolulu, the percentage of new home sales in Austin and Cape Coral is much higher. Just shy of half (49%) of homes sold in Austin are new construction. In Cape Coral, 37% of homes sold are new construction.
| Rank | City | All Homes Price | New Homes Price | Price Gap | New Homes Share |
|---|---|---|---|---|---|
| 1 | San Francisco, CA | $1,080,000 | $995,000 | -$85,000 | 3% |
| 2 | Austin, TX | $443,000 | $370,959 | -$72,041 | 49% |
| 3 | Urban Honolulu, HI | $745,773 | $678,475 | -$67,298 | 4% |
| 4 | Cape Coral, FL | $370,000 | $350,000 | -$20,000 | 37% |
Two-Thirds of Raleigh Home Sales Are New Construction
Six U.S. cities have housing markets where new construction makes up more than half of all home sales. Raleigh, North Carolina, leads the field with new construction comprising 66% of homes sold. The other five cities where new construction accounts for over 50% of houses sold are:
- San Antonio, Texas (64%)
- Boise, Idaho (63%)
- Lakeland, Florida (58%)
- Provo, Utah (56%)
- Fayetteville, Arkansas (50%)
All six cities share strong population growth and active homebuilder markets. New construction is one of the primary ways new inventory enters supply in these metros, contrasting sharply with cities such as Miami and New York, where new construction makes up only 3% to 4% of home sales.
McAllen, Texas, Has the Most Affordable New Builds at $263,000
In McAllen, Texas, newly constructed homes cost a median of $263,000, the lowest price among all cities studied. McAllen's 44% new-construction share is nearly triple the national average of 15%.
Nine of the 10 cities with the lowest-priced new construction are located in the South, and four of them are in Texas. The other city, Dayton, is in the Midwest.
Even though new construction in these cities still costs more than existing homes locally, every one of the 10 cheapest markets falls below the typical U.S. home price of $357,000. A new build in McAllen at $263,000 is nearly $94,000 less than the national median for any home.
With the exception of Dayton, the cities on this list also have higher-than-average shares of new construction.
| Rank | City | All Homes Price | New Homes Price | Price Gap | New Homes Share |
|---|---|---|---|---|---|
| 1 | McAllen, TX | $228,500 | $263,000 | $34,500 | 44% |
| 2 | Columbia, SC | $255,750 | $281,596 | $25,846 | 25% |
| 3 | Killeen, TX | $254,000 | $291,975 | $37,975 | 41% |
| 4 | Baton Rouge, LA | $264,000 | $294,479 | $30,479 | 19% |
| 5 | San Antonio, TX | $295,000 | $295,950 | $950 | 64% |
| 6 | El Paso, TX | $242,000 | $296,130 | $54,130 | 48% |
| 7 | Little Rock, AR | $229,950 | $298,625 | $68,675 | 19% |
| 8 | Dayton, OH | $210,000 | $301,851 | $91,851 | 5% |
| 9 | Oklahoma City, OK | $244,500 | $303,000 | $58,500 | 21% |
| 10 | Lakeland, FL | $285,000 | $312,960 | $27,960 | 58% |
What Does New Construction Cost in Your City?
Use the map above or the searchable table below to see how much new construction costs in your city and how often it's sold.
| Rank | City | All Homes Price | New Homes Price | Price Gap | All Sales (2025) | New Sales (2025) | New Homes Share |
|---|
📋 Press Kit
▶U.S. Overview
- The median new construction home costs $409,565, which is $52,565 higher than the overall median of $357,000.
- New construction prices have risen 21.6% in the past five years, outpacing the 13.3% increase for all homes.
- New construction homes were $151,018 more expensive than overall homes in December 2022, at the tail end of the pandemic boom.
- New homes comprise 15% of the U.S. market. Zillow reported 571,213 new construction sales in 2025 out of more than 3.7 million homes sold overall.
City-Level Trends
- The steepest new-construction premiums are in Miami ($600,000 above the median), Los Angeles ($387,495), and Cleveland ($366,350).
- Only four of the 100 largest U.S. cities have new construction priced below their existing-home median: San Francisco, Austin, Honolulu, and Cape Coral.
- Raleigh, North Carolina, leads the country in new construction's share of home sales at 66%, followed by San Antonio (64%) and Boise (63%).
- McAllen, Texas, has the most affordable new construction in the country at $263,000. Nine of the 10 cheapest markets are in the South, with four in Texas alone.
Methodology
Clever Real Estate examined Zillow home sale data by city for the most recent month available (February 2026) and annualized data from 2025. Cities with incomplete data were excluded from the study and replaced with the next largest cities to reach a total of 100.
About Clever Real Estate
Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. About 12 million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions. To date, Clever has helped consumers save more than $240 million on Realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.
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Frequently Asked Questions
The median sale price of a home in the U.S. is $357,000, but new construction sells for a median of $409,565, about $52,565 higher. Over the past five years, new construction prices have risen 21.6%, outpacing the 13.3% increase for all homes.
Only four of the 100 largest U.S. cities offer new construction below their existing-home median: San Francisco ($85,000 cheaper), Austin ($72,041 cheaper), Honolulu ($67,298 cheaper), and Cape Coral ($20,000 cheaper). In San Francisco and Honolulu, even the cheaper new homes remain well above the national median price.
Over the past five years, new construction prices have risen 21.6%, outpacing the 13.3% increase for all homes. Prices have eased slightly since 2025 (-3.9%) while overall home prices have continued to rise (+2%).
McAllen, Texas, has the most affordable new construction in the country at $263,000. Nine of the 10 cheapest markets for new builds are in the South, and four of them are in Texas: McAllen, Killeen, San Antonio, and El Paso.