Due to last year’s government shutdown, the latest new-home sales data from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) has been held up until now—and the results suggest cause for optimism.
During October 2025, 737,000 new units were sold in the U.S. This is down slightly from September 2025 (when 738,000 units were sold), but an annual increase of 18.7% from the 621,000 units sold in October 2024. New houses for sale at the end of October 2025 numbered 488,000, unchanged month-over-month and up slightly (1.7%) year-over-year. At the current sale rate, there is about 7.9 months of inventory—this is down from 9.3 months in October 2024, which could suggest that selling activity and/or new construction has picked up.
Alongside units sold, the median sales price for new homes in October 2025 was $392,300, down 8% year-over-year from $426,300 in October 2024. This marks the first time in 2025 that more than 50% of new units sold for below $400,000. As Realtor.com® Chief Economist Joel Berner noted in commentary on the results, “builders are eager to move their inventory and are pricing to do so.”
There is a noticeable discrepancy between the median new-home price and the median existing-home price (which came in at $415,200). Berner attributed this to two primary factors, both the result of builder behavior: “Builders are more motivated sellers than regular homeowners, many of whom are reluctant to cut prices and would rather delist their home than sell below their target, and builders continue to deliver smaller and more affordable new homes in more affordable areas.”
Though the new-home sales data lags, these findings track with more recent housing market data. For instance, existing-home sales climbed for three consecutive months through December 2025, and pending home sales also posted a monthly and annual increase at the end of the year. One cited reason for increased sales momentum is mortgage rates holding steady at around 6%; Berner said explicitly that, “lower mortgage rates spurred buyers on to making purchases.”
“Affordability is the main constraint in the housing market currently, and builders are doing their part to bring more buyers into the fold by delivering low-priced new inventory to the market in a way that the existing home segment simply can’t,” said Berner in summation. “Combined with lower mortgage rates, it is an especially attractive time for buyers to be searching for a newly built home.”
Regional breakdown
Of the four major U.S. census regions, the South saw the greatest increase in new-home sales, per seasonally adjusted data. New-home sales in the South reached 513,000 in October 2025, representing a 16.9% monthly increase and a 42.1% annual increase. This makes the South the only region that posted a monthly increase in new units sold between September and October 2025.
The West posted the second-largest raw number of new-home sales in October at 109,000. However, this was a 36.3% decline month-over-month and a 24.8% decline annually. The Midwest trailed behind the South with 91,000 new-home sales in October, up 21.3% year-over-year but down 9% month-over-month.
The North posted the opposite ratio of decline as the West; at 24,000 new-home sales, sales declined by 14.3% monthly but by 40% annually.
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