Urban new homes are scarce and cost 78% more than existing ones, while suburban new builds remain affordable.

Realtor.com's Q1 2026 report reveals urban new construction homes make up only 11% of listings but carry a 78% price premium over existing urban homes, reflecting scarcity and high demand. In contrast, suburban new builds dominate the market at nearly 80% of listings and have a modest 7% premium, benefiting from more supply and competitive pricing, especially in the South. Major metros like Miami and New York show the highest urban new build premiums, highlighting the challenge and cost of building in cities. Despite stable national new home prices, builders face pressure from rising costs and economic uncertainty, managing inventory carefully with some price reductions to attract buyers.