On The Market One of the Best Types of Rentals Just Got Cheaper
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Oct 2, 2025 The market for new construction homes is heating up in 2025, with prices dropping below existing homes. Builders are incentivizing purchases to quickly move inventory, presenting a golden opportunity for investors. The podcast dives into the advantages of new builds, like lower monthly costs and increased cash flow potential. Key markets are identified, as well as strategies for rentals and house hacking. It also highlights negotiation tactics with builders and the importance of thorough underwriting. Tune in to uncover how to maximize this emerging trend!
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New Homes Cheaper Than Existing Ones
- For the first time, median new-home prices fell below existing-home prices, creating a rare market inversion.
- This shift is driven by builder incentives and differing inventory dynamics between builders and homeowners.
Builders' Inventory Drives Incentives
- Builders face inventory pressure and must move product quickly to free capital for new phases.
- That pressure makes builders more willing to offer concessions like price cuts, credits, and rate buy-downs.
Higher Supply But Still Stimulated Demand
- Months-of-supply for new construction is much higher than for existing homes, signaling excess new-inventory.
- New-home sales spiked, showing incentives can stimulate demand even amid a broader slowdown.