Over the past five years, new construction prices have surged by 21.6%, significantly outstripping the 13.3% growth seen in the existing housing market. Despite this climb, newly built properties represent a shrinking portion of total transactions, accounting for only 15% of the 3.7 million sales recorded in 2025—a notable decline from the 20% share held in 2023.

Geography dictates the severity of this premium. Miami leads the nation with a staggering $600,000 markup for new construction, followed by Los Angeles and Cleveland. While high-cost metros typically drive these numbers, Cleveland presents a unique outlier; its median home price sits well below the national average, suggesting that developers there are focusing exclusively on luxury segments. Conversely, a handful of expensive markets, including San Francisco and Austin, buck the trend by offering new construction at lower price points than older homes, though these remain among the most expensive cities for buyers overall.