The national housing conversation often centers on affordability, and for good reason: the median price of a new home is now $424,900. Projects with average entry-level, new-home pricing below $300,000 accounted for just 14.2% of total contract volume as of May, down significantly from 27.3% in May 2019, when they represented the second-largest portion of the market. For context:
- $300,000 to $400,000 represented 26.9% of activity in 2019 versus 27.9% today
- $400,000 to $500,000: 19.1% to 23%
- $500,000 to $750,000: 18.1% to 24.7%
- $750,000+: 8.6% to 10.2%
Since demand is still strong for new homes priced below $300,000, the remainder of this report examines the builders and metro areas that are generating the most activity in this shrinking segment of the market.
The insights in this article are just a snippet of a more in-depth research report published in Zonda’s National Outlook.
