Builder Incentives Hit a 5-Year High: Why Now May Be the Best Time to Buy New Construction Homes

If you’ve been searching for a home lately, you already know it’s not always easy to find “the one.” Maybe the kitchen feels outdated, the layout doesn’t flow, or the price tag stretches your budget further than you’d like. Sound familiar?

Well, here’s the good news: more and more buyers are turning to new construction homes—and right now, the deals are better than we’ve seen in years. In fact, builder incentives have reached their highest level in five years, and that could mean thousands of dollars in savings for you.

Let’s break down what’s happening in today’s housing market, why builders are offering so much, and how you can take advantage of it.

Why Builders Are Sweetening the Deal

Here’s the simple truth: many homebuilders have more completed homes sitting on the market than usual. And if you’ve ever run a business, you know what that means—they don’t want inventory just sitting around. Every house that goes unsold ties up cash flow, delays future builds, and eats into profits.

To move those homes quickly, builders are offering bigger incentives, cutting prices, and finding creative ways to make deals happen. Lance Lambert, Co-Founder of ResiClub, summed it up perfectly:

“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.”

In other words, builders are motivated. And when they’re motivated, buyers like you stand to gain.

Incentives Are the Strongest in Five Years

According to fresh data from the National Association of Home Builders (NAHB), 66% of builders offered sales incentives in August. That’s two out of every three builders!

To put it in perspective, that’s the highest level of builder incentives we’ve seen in five years. If you’ve been sitting on the fence about buying, this might be the moment you’ve been waiting for.

Price Cuts Are Back—and They’re Big

One of the biggest perks on the table right now? Price reductions.

Nearly 40% of builders are cutting prices, with the average discount sitting around 5% off the purchase price.

That may not sound like much at first, but let’s do some quick math:

• On a $500,000 home, a 5% price cut saves you $25,000.

• That’s not just a number—it’s money you could put toward new furniture, landscaping, or even knocking down your mortgage balance.

And even if your builder isn’t lowering the sticker price, don’t worry. Many are offering other incentives like:

• Mortgage rate buydowns (to lower your monthly payment)

• Assistance with closing costs

• Free upgrades, like premium flooring or smart-home packages

As Realtor.com explains, “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.”

Why New Construction Homes Are Worth Considering

So, why should you even consider new construction in the first place? Beyond the incentives, there are some real lifestyle perks that come with a newly built home:

• Open-concept layouts with bigger kitchens and more natural light

• Energy-efficient designs, which mean lower monthly utility bills

• Smart-home features already built in (no costly retrofitting later)

• Peace of mind with fewer repair and maintenance worries right from the start

Think of it this way: buying an older home can sometimes feel like inheriting someone else’s to-do list. A new build gives you a fresh start—with today’s builder discounts making it more affordable than ever.

Pro Tip: Don’t Go It Alone

Now, here’s a word of caution. Walking into a builder’s sales office without your own real estate agent is a lot like stepping onto a car lot alone—the rep works for the seller, not for you.

That’s why you need a trusted agent by your side. Here’s what they’ll do for you:

• Cut through the sales pitch and show you the real numbers

• Spot the best incentives (and call out the ones that are just fluff)

• Handle negotiations so you walk away with the strongest deal

• Protect your best interests at every step of the process

Remember, the builder’s rep wants to maximize their profit. Your agent wants to maximize your savings.

Bottom Line: The Best Time in Years to Buy New Construction

If you’re frustrated with resale homes or struggling to find the right fit, new construction could be your answer. With incentives at a five-year high, price cuts on the table, and builders eager to clear out inventory, this is one of the most buyer-friendly windows we’ve seen in years.

Your dream home might be sitting in a new neighborhood right now—at a price that’s finally within reach.

So, the question is: are you ready to take advantage of today’s builder incentives before they disappear?

👉 Curious how far these discounts could stretch your budget? Let’s connect today and explore what builders in your area are offering—you might be surprised at the deals waiting for you.