New Home Prices are Dropping in 16 Major U.S. Markets

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Aug 14, 2025, 09:00 ET

Nearly 4 in 10 new-home listings saw price cuts, the highest since the pandemic peak.

Indianapolis, Columbus, and Denver are among the major U.S. markets with price cuts in more than half of active new-home listings.
38.5% of active listings nationally had a price reduction in June 2025, one of the highest shares observed at this time of year outside of the pandemic-era spike in 2022.
"In more challenging markets like today, sellers are faced with a reality check: Their home may not sell for the same price their neighbor got just two years ago," says Ali Wolf, chief economist of Zonda and NewHomeSource.

NEWPORT BEACH, Calif., Aug. 14, 2025 /PRNewswire/ -- New home price cuts are becoming more common across the country according to a new analysis from NewHomeSource .

In June 2025, 38.5% of active listings nationally had a price reduction, one of the highest shares observed at this time of year outside of the pandemic-era spike in 2022.

However, what does this national data mean for the local markets? The NewHomeSource team took a deeper dive to see where price cuts have been the most common and how this changed over time.

Why it matters: While price cuts are happening across the board, some markets have seen much larger shifts than others . Homebuyers seeking lower prices may find good news in markets such as Indianapolis, Columbus, and Denver, while residents in markets such as Naples might not have much luck.

"In strong housing markets , we don't typically find that sellers are lowering their list price," says Ali Wolf, chief economist of NewHomeSource.

Using June 2025 data, NewHomeSource tracked the share of active listings with price cuts across 50 top housing markets.

High-Level Analysis

In 16 major markets, more than half of active listings had a price cut in June. This is a noticeable change from just a few years ago, when buyers were often competing in bidding wars and price cuts were much less common.

The markets with price cuts in more than half of active listings include:

"In more challenging markets like today, sellers are faced with a reality check: Their home may not sell for the same price their neighbor got just two years ago," Wolf said.

Wolf cautions that this does not mean home prices are crashing. Instead, sellers simply need to be more realistic about housing affordability and consumer demand when pricing their homes for the market today.

Annual and Pre-Pandemic Shifts

In 29 markets, the share of active listings with price cuts grew from June 2024 to June 2025. The largest gains were seen in San Jose, California (+32.1%) and Richmond, Virginia (+22.0%). At the other end of spectrum, Naples, Florida saw the steepest decline in the share of price cuts compared to June 2024 (-21.4%).

Over 80% of markets saw more price cuts in 2025 than before the pandemic.
Columbia, South Carolina had the most dramatic increase, seeing the share of listings with price cuts grow by 89.7%.
While a handful of markets saw the share listings with price cuts decline, most of these dips were negligible at fewer than 5%. The exceptions were:
- San Jose, California (-16.9%)
- Chicago (-7.3%)
- New York (-22.0%)

The Bottom Line

Consumers who are shopping for a new home should keep an eye on market-level price cut trends can give them a real advantage. A growing number of discounted listings often means demand is cooling, which can create more room for negotiation for home buyers.

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About NewHomeSource

NewHomeSource is America's #1 destination for new construction homes and communities. Powered by Zonda's industry-leading data and virtual engagement tools, NewHomeSource connects builders and homebuyers through immersive, personalized experiences. Search the most complete collection of new home listings at https://www.newhomesource.com.

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