Even with more homes on the market, some buyers are still struggling to find the right property at the right price. Maybe the layout doesn’t work, the finishes need updating, or it’s just more of the same. That’s why many buyers are turning to new construction — and finding some of the best deals available today.

Why now?

Today, many builders have more finished homes sitting on the market than they normally do. That inventory buildup makes builders motivated sellers: they don’t want to carry completed homes while they build more. As Lance Lambert, co-founder of ResiClub, explains, “In housing markets where unsold completed inventory has built up, many homebuilders have pulled back on their spec builds—and many are doing bigger incentives or outright price cuts to move unsold inventory.”

Incentives are at a five-year high

According to NAHB data, about 66% of builders offered sales incentives in August — roughly two out of every three builders. That’s the highest level seen in about five years, and it means buyers have real leverage when negotiating new construction deals.

Nearly 40% of builders are implementing price cuts, and on average those cuts hover around 5% of the purchase price. On a $500,000 home, a 5% reduction equals $25,000 — a difference that can turn a compromise into a home that actually works for you.

Even when builders don’t reduce price, they often use other levers: mortgage buydowns, closing-cost assistance, design-center credits and upgraded finishes. As Realtor.com notes, builders are increasingly willing to negotiate on price or offer incentives like rate buydowns and closing-cost help.

For buyers, the current incentive environment creates opportunities:

1. Better negotiating power. Builders are more open to concession packages that lower your out-of-pocket costs or improve the finished product.

2. Lower near-term payments. Rate buydowns and closing assistance can materially reduce initial monthly costs.

3. Faster move-ins. With more completed inventory, you can often avoid long build timelines and move sooner.

Practical tip: always model total housing cost (mortgage + HOA + taxes + insurance + utilities) and run scenarios for after any temporary buydown expires.

Sellers of resale homes face new comparisons from buyers weighing resale versus new:

1. Resale must highlight unique value. Emphasize lot size, mature landscaping, neighborhood character, school zones and any updates that new builds don’t provide.

2. Consider targeted improvements. Small, high-ROI updates and strong staging help resale listings stand out against builder incentives.

3. Price and timing matter more. In markets with heavy new inventory, pricing competitively and choosing the right listing window are key.

Incentives aren’t generosity — they’re a response to rising carrying costs and unsold inventory. Buying down rates and offering upgrades cut into margins, and many builders are slowing starts while they work through existing product. That pressure may continue until inventory normalizes.

How to use incentives to your advantage

1. Get pre-approved so builders and lenders take you seriously.

2. Compare offers side-by-side — buy-downs, credits and upgrades aren’t all equal.

3. Ask for the details in writing: length of a buydown, scope of credits, and any restrictions.

4. Model the post-buydown payment to ensure long-term affordability.

5. Bring your own agent. Builder sales reps represent the builder’s interests — your agent protects yours, negotiates trade-offs, and spots which incentives really matter.

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Bottom line

Rising builder incentives have opened a window of opportunity for buyers. Price cuts, buydowns and credits mean you can often get more value in new construction than in recent years — but incentives also reflect pressure on builders and higher unsold inventory, which can influence pricing and starts over time.

📍 If you want to see what incentives look like in your area and compare builder offers side-by-side, one of our agents can run the numbers, evaluate trade-offs, and help you negotiate the best possible package. Curious how far today’s incentives could stretch your budget? Let’s connect and take a look.