10 Cities Where New-Build Homes Are Surprisingly Affordable
New builds often have the modern amenities that are the gold standard for home buyers: You’ll find en suite bathrooms, functional open-concept floor plans, and mudrooms with enough space for all of your kids’ sports gear. And because everything is brand new, you shouldn't have to worry about replacing the roof or the boiler for at least a decade. Some builders even allow buyers to choose their finishes—things like flooring, tile, and countertops—before a house has been completed, making it feel like a custom project.
These often don't come cheap, but there are several cities across America where new construction homes are remarkably affordable. “Nationwide, new homes are still selling for about $54,000 more than existing homes, but for the first time in six years, new homes are cheaper by the foot,” says Amanda Pendleton, Zillow’s home trends expert. “Those savings come on top of the incentives commonly offered by builders, like mortgage rate buydowns that can help with monthly interest costs.” Pendleton notes that new homes are now more affordable because lots are smaller (the average lot size for new builds is now 460 feet smaller than in 2018, about the size of a one-car garage) which results in smaller homes being built (new homes sold in May of 2024 were 185 square feet smaller than homes sold in 2018—roughly the size of a bedroom). Another reason: Builders are more likely to cut their prices than owners of existing homes. In fact, about 29% of new homes received a price cut in June.
You don’t need to move to a far-flung location to take advantage of these savings; according to Zillow, the 10 cities offering the biggest deals are culturally rich areas with great schools and plenty of job opportunities. Take advantage of these offers now and move into a new home just in time for the new year.
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Washington D.C.
Median sale price of a new construction home: $640,000
New homes in the nation’s capital are the most expensive on this list, but still relatively affordable compared to other big cities, and $48.10 less per square foot than homes that were built in the area a few years ago. Many of the new construction properties are townhouses and apartments—some of which blend seamlessly with the city’s historic facades and others that are strikingly modern—but there are some new detached, single-family homes on the market too, although they tend to be more expensive.
Riverside, California
Median sale price of a new construction home: $610,805
Riverside’s popularity can be partly attributed to Los Angeles’ growing unpopularity. In the first quarter of this year, more than 30,000 people left the City of Angles, according to data from Redfin. Riverside is located just a mile inland from Los Angeles, so people can live in charming Riverside and take advantage of LA’s job market, cultural events, beaches, and world-renowned restaurants and shopping without having to deal with LA’s sky-high cost of living. Riverside is a historic town with many examples of notable classic architecture, but there are also plenty of new builds to choose from, which remain slightly less expensive per square foot than the city’s older homes.
Denver, Colorado
Median sale price of a new construction home: $609,000
Denver is a beautiful, sunny city surrounded by mountains, which makes it a no-brainer for outdoorsy types who want to ski on the weekends. Unlike many other big cities, Denver is made up of mostly single-family homes on large lots (by city standards), and it’s known for being friendly and offering a high quality of life (great food and culture, five pro sports teams, and a major airport with direct flights galore) for a relatively low cost of living. Builders have been tearing down old bungalows in both desirable and up-and-coming areas and building larger houses—and also townhouses and condos, which account for many of the new construction homes on the market right now.
Portland, Oregon
Median sale price of a new construction home: $589,900
Oregon’s biggest city may be known for its gray, rainy weather, but its affordable new home prices are a bright spot. The new construction houses on the market are a mix of modern condos, townhouses, and compact single-family residences, some of which come with incentives like no money down and low HOA dues. Portland’s laid-back culture, vibrant food scene, and prime location—you can get to the beach and ski mountains like Mt. Hood in under two hours—make it a desirable place to live, especially for those who work in tech or sports. (Nike is based in nearby Beaverton.)
Salt Lake City, Utah
Median sale price of a new construction home is $519,990
The biggest reason people are flocking to Salt Lake City is for jobs; The Wall Street Journal named it the country’s hottest job market in 2023. With so many new residents, it’s no coincidence that construction has picked up dramatically. If you buy a new build in Salt Lake City (the median sale price of a new home is $15,010 cheaper and $53.60 less per square foot than an existing home), you’ll be within an hour from some of the country’s best ski resorts: Park City, Deer Valley, and Alta. Since the annual snowfall in Salt Lake is 54 inches and you can usually count on 222 sunny days per year, you’re pretty much guaranteed peak conditions.
Nashville, Tennessee
Median sale price of a new construction home: $476,830
When you search for ‘new construction homes in Nashville’ on Zillow, you get 869 results. These new builds run the gamut from small charming homes to chic townhouses to multi-million dollar properties—many of which are a stone’s throw from Nashville’s famous live music venues, popular restaurants, and beautiful Vanderbilt University. While Nashville’s party scene has earned it the nickname ‘Nashvegas,’ it’s a warm and welcoming city that’s perfect for families—and the lack of state income tax and low cost of living is drawing transplants from California and other expensive states.
Phoenix, Arizona
Median sale price of a new construction home: $459,990
With more than 300 days a year of sunshine and temperatures hovering around 70 degrees during the dead winter, this desert city is becoming increasingly popular with people (yes, many of them retirees) sick of long, cold winters. Phoenix has a low cost of living, a healthy job market, and good access to outdoor activities (it’s home to nearly 200 golf courses, plus miles of hiking trails). Even with all Pheonix has to offer, prices for new construction homes are relatively low, making it a good place to invest if you’re looking for year-round warm weather—and don’t mind the city’s urban sprawl and limited public transportation.
Raleigh, North Carolina
Median sale price of a new construction home: $415,000
North Carolina’s capital city is part of Research Triangle Park (RTP), which is a (yes) triangle-shaped region formed by the locations of three major research universities: Duke, The University of New Carolina at Chapel Hill, and North Carolina State University—and is home to approximately 4,000 tech companies. Raleigh’s population is growing at a rapid pace, which has fueled a building boom (over the past ten years 15,000 single-family homes and 16,000 apartments have gone up). Between the city’s robust job market, pleasant weather, and friendly people, Raleigh is a smart place to invest in a new house.
Austin, Texas
Median sale price of a new construction home: $402,580
This lively yet laid-back college town is home to the University of Texas, a renowned food and music scene, and plenty of parks, lakes, and rivers for outdoor sports. You’d expect that a city that’s widely considered one of the most desirable places to live in America would be expensive, but housing prices, particularly for new builds, are relatively low. The median sale price of a new home is actually $82,420 cheaper and $48.30 less per square foot than an existing home.
Tampa, Florida
Median sale price of a new construction home: $399,000
Ever since Covid, Florida real estate has been hot. And one spot that’s seeing especially fast growth is Tampa. Tampa has a lot going for it: Sunny weather year-round, access to beautiful beaches, several pro sports teams (including the Tampa Bay Buccaneers, the Tampa Bay Lightning, and the Tampa Bay Rays), big-name universities (The University of Tampa and The University of South Florida), plenty of shopping, restaurants, and nightlife, and a relatively low cost of living. New houses are still within reach with a median sale price still just under $400,000, but given Tampa’s growing popularity, prices are expected to continue to rise.
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