Builder Incentives Climb to 5-Year Peak

Even though there are more homes available right now, many buyers are still struggling to find the right fit at the right price. Maybe the layout isn’t quite right. Maybe the home needs some updates. Or maybe everything just feels too similar to what they've already seen.

That’s why many buyers are now looking at new construction — where some of the best deals on the market can be found today.

Why is that? Right now, many builders have a higher-than-usual number of completed homes sitting on the market. That makes them more motivated to sell. After all, they’re running a business — and holding onto unsold inventory slows them down. They’re eager to move those homes before starting new construction.

And that urgency can work to your advantage.

As Lance Lambert, Co-Founder of ResiClub, explains:

“In housing markets where unsold completed inventory has built up, many homebuilders have pulled back on their spec builds—and many are doing bigger incentives or outright price cuts to move unsold inventory.”

5-Year High: Builder Incentives Are Back and Bigger Than Ever

Data from the National Association of Home Builders (NAHB) shows 66% of builders offered sales incentives in August. That’s the peak so far this year, and the highest percentage we’ve seen in 5 years.

That means 2 out of every 3 builders are offering something extra to get deals done. And when builders throw in incentives, it’s the buyers like you who win.

Price Reductions Are Making a Comeback

One of the most common incentives they’re offering right now is adjusting the price. According to NAHB, almost 40% of builders are doing price cuts (see graph below):

On average they’re taking off about 5% off the purchase price of the house. For a buyer, 5% could be the difference between reluctantly settling and finally getting a home that works for you.

 For example, consider a $500,000 home. A 5% price reduction from the builder would save you $25,000

a significant discount.

But even if the builder isn’t willing to lower the price, there are still other ways to save. Many are offering additional incentives to attract buyers. As Realtor.com puts it:

“. . . there are deals to be found in the market for new homes, with builders increasingly willing to negotiate on price or offer incentives such as rate buydowns and closing cost assistance.”

What This Means for You

As a buyer, you likely have a clear picture of your dream home. You’re not just buying any house — you’re looking for your perfect space, with the features and lifestyle you’ve been envisioning. New construction homes often fit the bill because they typically offer:

• Larger kitchens and open floor plans

• Better energy efficiency (meaning lower utility bills)

• Modern smart-home technology

• Fewer maintenance issues from day one

Thanks to today’s incentives, buying a new home is more affordable and within reach than it has been in years.

Key Takeaway