In the second quarter of 2026, the national median price for a new single-family home was $410,700, $25,000 lower than the national median price of an existing home, which stood at $435,700. This marks the largest difference between the national median trends for existing and new home prices, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA). However, the national trend reversal is best understood as a regional and compositional phenomenon.
Historically, the national median prices of new homes trended above existing homes. However, beginning in the second quarter of 2024, this relationship reversed, with the national median existing home prices exceeding new home prices in six of the past nine quarters.
There are several factors for this new trend. Tight inventory continues to push up prices for existing homes, as many homeowners who secured low mortgage rates during the pandemic are hesitant to sell due to continued high interest rates.
Meanwhile, new home pricing is more volatile – prices change due to the types and locations of homes being built. Despite various challenges facing the industry, home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes, and offering incentives. According to NAHB’s Home Building Geography Index, new homes are also shifting away from dense population centers (more expensive) and are moving toward smaller metro/micro areas (less expensive). Geographically, there has been a shift in home building toward the South, associated with less expensive homes because of policy and regulatory effects. This has occurred in an environment in which construction costs continue to rise, which is the fundamental driver of new and existing home prices.
Although the national trend shows existing homes at higher median prices than new homes, a similar trend occurs in only two geographic regions: the South and the West. Meanwhile, the Northeast and Midwest show the opposite trend. New and existing home prices can vary across regions due to many underlying factors including regulations, land and construction costs, home and lot sizes, location (urban vs. rural areas), housing stock, and local market conditions.
In the second quarter, the least expensive region for new homes was the South, with a median price of $362,500. The Midwest followed closely behind at $397,200. For existing homes, the Midwest was the least expensive region at $342,000, followed by the South at $380,600.
New homes were most expensive in the Northeast with a median price of $704,700, while the West sold at $546,700. For existing homes, the West led as the most expensive region at $636,900, followed by the Northeast at $546,900.
The new home price premium was most pronounced in the Northeast, where new homes sold for $157,800 more than existing homes. Additionally, in the Midwest, new homes sold for $55,200 more than existing homes. The West and South set the national trend, with existing homes priced $90,200 more than new homes in the West and $18,100 more in the South.
Both new and existing homes saw dramatic increases in price post-pandemic due to higher construction costs and limited supply. While overall home prices remain unaffordable compared to historical norms, new home prices have moderated due to tactical builder business decisions, whereas existing home prices continue to increase because of lean supply in some markets and, perhaps, a lack of price discovery for existing homeowners.
The national median price for a new single-family home sold in the second quarter of 2026 decreased by 1.3% from the previous year. New home price annual growth has been trending downwards since the second quarter of 2023.
Although existing home prices have continued to experience year-over-year increases for the past twelve quarters, annual growth has slowed from a high of 4.9% two years ago to 1.7% in the second quarter of 2026.