Homebuilders Are Struggling To Clear Their Inventory — Here’s How Their Loss Could Be Your Gain

With the median sale price of a US home still well over $400K, homeownership might feel like a faraway dream for many Americans. But as buyers stay on the sidelines, builders are pulling out all the stops to move new but unsold houses — which are now sitting empty at the highest rate since 2009. That could spell opportunity if you’re a first-time buyer in the market for a house.

• Per WSJ, homebuilders D.R. HortonDHI
  and LennarLEN
  are subsidizing lower interest rates to clear inventory, with major developers offering 5% mortgage rates (vs. the near-7% rates seen across the market).
• Research shows that builders offered first-time buyers an 8% discount through “sweeteners and mortgage rate buydowns,” up from 7.2% in January.

What does this mean for you? As first-time buyers — who made up 40% of homebuilders’ sales in 2024, per NAR data — sit on the sidelines for longer, developers may keep sweetening deals to shift excess supply. Identifying new developments in your region and driving by might not be a bad idea. Especially now, as new builds — already cheaper than older, lived-in homes — could come at more palatable buying prices, with the added bonus of a potential refinance in the coming months.