HOMEBUYERS: New Construction Increasingly a More Cost-Effective Choice

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May 08, 2025, 08:00 ET

As New Home Market Conditions Stay Near Average, Consumers Stand to Benefit

DANA POINT, Calif., May 8, 2025 /PRNewswire/ -- The Builder 100 – Zonda's 37^th annual gathering of top U.S. builders wrapped up yesterday. As a unique national provider tracking the entire building cycle, the event covers critical industry topics such as the state of the current housing market.

Zonda chief economist Ali Wolf — whose role has recently expanded to chief economist for NewHomeSource.com — offered some 'back to the basics' advice on what we'll see from consumers in the coming year in a presentation this week titled 'Economic Outlook for Housing.'

Ali Wolf, Chief Economist for NewHomeSource and Zonda

"While consumers remain very concerned about the economy and whether we'll enter a recession, for those who have the means to make a move, they stand to see an increased benefit in the type of home they can secure for themselves," says Ali Wolf chief economist for Zonda and NewHomeSource.

"Because of market uncertainty, new home prices were down from peak in every one of the 50 markets we track, and 35% of builders reported lowering prices in April," Wolf adds. "If a consumer is looking to buy this year, the case for a new home is growing."

The price spread between buying a new construction home versus buying an existing home has narrowed (partly because of changing product).
Because of an aged housing stock, new construction allows consumers to minimize unforeseen renovation problems.
Builders are also increasingly offering more incentives, making it even more attractive to buy new.
Through new construction, consumers can also customize and design their homes to fit their lives.
Finally, new home buyers benefit from reduced insurance costs.

The nation's largest builders were recently unveiled as part of the Builder 100 and Next 100 lists, including focuses on specific consumer segments:

Visit NewHomeSource for more on:

How to Choose Between New Construction and Resale Homes
A Step-by-Step Guide to the Home Building Process
TrustBuilder Reviews: Home Builder Reviews from Real Homebuyers

Also see from Builder 100:

About NewHomeSource (NHS)
NewHomeSource.com is America's #1 source for consumers as they search for new construction communities and homes. NewHomeSource also has the most extensive collection of ratings and reviews for homebuilders nationwide. As the only independent source of reviews from verified homebuyers, TrustBuilder delivers the honest insights you need to make decisions with confidence.

About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing. zondahome.com

About BUILDER
BUILDER is the No. 1 resource—via its award-winning journalism and industry events—for anyone involved in new-home construction. Primarily focused on the single-family sector, BUILDER strives to help home builders manage their operations, large and small, more efficiently and profitably. Residential construction pros turn to BUILDER for housing-related news, market analysis, design trends, M&A deals, building product coverage, and more. builderonline.com

For media inquiries or to schedule an interview with Chief Economist Ali Wolf:
Contact: Diane Begin
Email: [email protected]
Phone: 224-836-5615

SOURCE NewHomeSource powered by Zonda