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New-Home Price Premium Hits Record Low
Robert Desiano
August 12, 2025
The price premium on newly built homes has shrunk to an all‑time low of 7.8% in the second quarter of 2025. That’s the smallest gap since data tracking began in 2016. Builders kept new-list prices flat—as of Q2, it’s $450,797—while existing-home listings climbed 2.4% to $418,300.
What’s more, new builds now deliver better square-foot value: averaging $218.66/sq ft versus $226.56/sq ft for existing homes.
Why It Matters for Florida Homebuyers:
An affordability wedge in hot markets. Overbuilder activity in the South—including Florida—is creating leverage in once overheated arenas.
Local pricing drops. Q2 saw new‑home list prices fall by 7.8% in Jacksonville and 7.4% in Cape Coral, signaling real opportunity in our backyard.
Market Implications at a Glance:
Insight | Details |
|---|---|
New vs. Used Value | New homes now offer more square-foot value at a lower premium. |
Regional Focus: South | The South (including Florida) leads in inventory and pricing leverage. |
Top Local Drops | Jacksonville (–7.8%); Cape Coral (–7.4%)—bold moves from builders. |
Buyer Advantage | Negotiation power shifts back toward buyers amid softer demand. |
What This Means for You:
For buyers exploring new construction: Now is as strong a time as ever to weigh new builds versus resale options. You may score more square footage and modern features for a smaller premium.
For sellers or agents: Expect rising pressure to price competitively—or risk losing buyers who see value in new builds.