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Where New Homes Cost Less per Square Foot Than Existing Homes in 10 U.S. Metros

In July 2026, new-construction median prices per square foot were below existing-home medians in 10 major U.S. metros, with the largest percentage gap in Austin.

By Bettesworth Construction Team 3 min read

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In July 2026, new-construction homes had a lower reported median price per square foot than existing homes in 10 major U.S. metro areas, according to Zillow data reported by Quartz. Austin had the largest percentage gap; San Diego had the largest dollar-per-square-foot gap. These are metro-level medians, not proof that a particular new build will cost less than a comparable resale.

Where new-home medians were lower

The figures below are median prices per square foot for July 2026. The discount percentages are those reported by Quartz from Zillow’s analysis; they compare each metro’s new-construction median with its existing-home median.

Metro New construction Existing homes Reported discount for new homes
Austin, Texas $184/sq. ft. $228/sq. ft. 19.3%
San Diego, California $498/sq. ft. $582/sq. ft. 14.4%
Raleigh, North Carolina $188/sq. ft. $219/sq. ft. 14.4%
Tampa, Florida $198/sq. ft. $226/sq. ft. 12.4%
Sacramento, California $298/sq. ft. $337/sq. ft. 11.6%
Dallas, Texas $175/sq. ft. $195/sq. ft. 10.3%
Nashville, Tennessee $225/sq. ft. $247/sq. ft. 8.9%
Salt Lake City, Utah $247/sq. ft. $268/sq. ft. 7.8%
Washington metro $268/sq. ft. $290/sq. ft. 7.6%
Riverside, California $304/sq. ft. $324/sq. ft. 6.2%

The national July 2026 medians were $205 per square foot for new homes and $212 for existing homes, also according to Zillow as reported by Quartz. The metro findings therefore sit within a relatively narrow national difference, while local gaps vary substantially.

How to read the biggest gaps

Austin: deepest percentage discount

Austin’s reported medians were $184 per square foot for new construction and $228 for existing homes, a $44 difference and the largest percentage discount in the ten-metro group: 19.3%. Multiplying that per-square-foot gap by a hypothetical 2,000-square-foot home gives $88,000. That is an arithmetic illustration based on metro medians, not a measured saving on two comparable homes.

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San Diego: widest dollar gap per square foot

San Diego had the largest dollar difference: $498 per square foot for new construction versus $582 for existing homes, an $84 gap. Applied to a hypothetical 2,000 square feet, the arithmetic difference is $168,000, but it does not establish the price difference between matched properties.

Sales shares show where new construction has a larger role

For the 12 months ending July 2026, new homes represented 33.6% of sales in Raleigh and 31.1% in Austin, according to Zillow as reported by Quartz. Those are trailing-year sales shares, not July-only shares. Salt Lake City’s figure was not available in the article because at least one month of the period was missing from Zillow’s data.

Why new construction may be undercutting resale

Quartz attributes the pattern to builders continuing to start homes as demand cooled, adding unsold supply and pressure to offer discounts or incentives. It contrasts that with existing homeowners who may have low mortgage rates and accumulated equity, making them less inclined to accept a lower offer. Quartz also notes that the largest discounts cluster in Sun Belt markets that added housing quickly.

This is an explanation offered in Quartz’s account of Zillow’s analysis, not a measured causal estimate. The reported comparison does not isolate the effect of supply, incentives, mortgage rates, or any other factor.

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What the comparison can—and cannot—tell a buyer

Zillow compared metro medians per square foot across 50 major U.S. metro areas, with the price snapshot for July 2026. The sales-share figures cover the 12 months ending in July 2026. The article does not provide the underlying dataset, full definitions of new and existing homes, or a matched-home method.

A lower median per square foot does not mean every new home is cheaper than every resale, or that a new build will have the lower total purchase cost. The figures do not standardize location, lot, size, layout, condition, included features, financing, incentives, or transaction costs.

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How to compare a new build with a resale locally

Use the metro trend as a starting point, then compare actual homes on consistent terms:

  • Compare both price per square foot and total price. The first helps contextualize size; the second is the amount you must finance or pay.
  • Match the property attributes. Consider location, lot, size, layout, condition, and what is included rather than treating all homes in a metro as interchangeable.
  • Put incentives beside the full deal. Compare builder incentives and financing terms with the resale asking price and any seller concessions.
  • Account for availability and timing. A listed median cannot tell you whether a particular home is available when you need it or whether the construction schedule fits your plans.

For the reported figures and its explanation of the market pattern, see Quartz’s October 5, 2026 report.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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