According to the National Association of Realtors, the median price of a newly built home was $316,700 in October 2019, 16.9% more than the price of existing homes. This is attributed to a slowdown in new construction following the Great Recession, followed by a focus on high-end projects. However, select larger markets remain more affordable for new home construction, particularly in the South and Midwest.
"Home builders are seeing costs increase left and right," says Ali Wolf, director of economic research for Meyers Research. "Land is extremely expensive, local governments have hefty fees, and wages for construction workers are on the rise—all of these factors drive up the cost of new homes."
Based on 12 months of new home data by CoreLogic on the 150 largest metros in the United States, Realtor.com’s Sara Ventiera has found that the most affordable new home market is Oklahoma City, Okla., where the median price of a new home is $227,550. Second is Winston-Salem, N.C., with a median new home price of $229,750.
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