New homes just beat old ones on price, and builders are shrinking them fast

Brand new houses now cost less than resale homes. In April the median price for a new build was about $407 k, while existing homes sat near $414 k. At the same time builders keep cutting floor plans.

Since early 2022 the typical new single family home has lost roughly two hundred square feet, sliding from about 2300 sq ft to just over 2100 sq ft.

More shoppers may look to new build neighborhoods for a lower sticker price, even if rooms feel tighter. Builders will likely stick with smaller footprints and simpler finishes to stay under resale prices. Just remember to keep looking in your specific area because even with new construction it’s different as we change from city to city across the United States.