The New Home Market: Slow and Steady

Sales Flat as Builders Lean on Incentives to Manage Rising Inventory

• Quick move-in (QMI) homes climbed to 2022 levels, averaging 2.5 per community, mirroring another period of economic uncertainty.
• Builders are leaning on incentives and price cuts to manage the supply increase, with 77% offering incentives on QMI homes.
• Prices for move-up and high-end homes increased for the first time since January, while entry-level home prices declined.

NEWPORT BEACH, Calif., Aug. 21, 2025 /PRNewswire/ -- Zonda released its July 2025 New Home Market Update, showing that new home sales activity was flat month-over-month. A notable shift emerged in the analysis: quick move-in (QMI) homes rose to levels last seen in 2022, reaching 2.5 per community.

Builders are leaning on incentives and price cuts to manage the supply increase while staying cautious about backfilling.

• 58% of new home communities offered incentives on to-be-built homes and 77% on quick move-in supply in July.

"The key characteristic of today's market is that blanket statements simply don't work," said Ali Wolf, chief economist for Zonda and NewHomeSource. "Saying "Texas is bad," for example, bundles a slow market like Austin with a more stable one like Dallas. Understanding the nuances of local markets is tricky today but helps to identify opportunities even in challenging conditions."

New home sales flattened month-over-month

• 668,318 new homes sold in July 2025 on a seasonally adjusted annualized rate
• 6% decline from last year and flat from last month

The Zonda Market Ranking (ZMR) was average all year so far

• National ZMR index: 106.9, flat month-over-month
• Top 50 markets: 28% overperformed, 32% were average, and 40% underperformed

Two new home price tiers increased for the first time since January

• Entry-level homes: -1.1% to $325,690
• Move-up homes: +0.4% to $518,194
• High-end homes: +2.6% to $923,048

Price gains are partly driven by new communities opening at higher prices given land and construction costs.

Communities no longer selling out quicker than they can be replaced

Zonda saw an increase of 9.8% in the number of actively selling communities that it tracks, to 16,596 communities. Year-over-year:

• Biggest growth: Orlando (+16.8%), Charlotte (+14.8%), and Raleigh (+13.5%)
• Biggest decline: Philadelphia (-16.3%), Minneapolis (-11.0%), and New York (-9.0%)

Quick move-ins were up year-over-year

National quick move-ins (QMIs) totaled 39,225, up 18.5% compared to last year, but 2.7% lower month-over-month.

• Biggest QMI growth year-over-year: Seattle (+146.9%), Washington, DC (+99.5%), and Baltimore (+80.9%)

See the full report on ZondaHome.com.

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. 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. Visit ZondaHome.com or follow us on LinkedIn for more information.

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SOURCE Zonda