Some homes are getting cheaper, creating an entry point for buyers
While the median price of an existing home has remained relatively flat, prices of new and manufactured homes have fallen since the pandemic-era buying frenzy.
Key points:
- The median price for a new home in Q4 of 2025 was 3.4% lower than a year earlier, according to the National Association of Home Builders.
- New homes tended to be more expensive during the 2010s — but the script has now flipped, with existing home prices outpacing new home prices in five of the past seven quarters.
- Manufactured homes have also dropped in price since the Covid-19 pandemic, providing an opening for renters interested in becoming first-time homeowners.
As the mortgage rate lock-in effect and housing inventory shortage continue to pose challenges for buyers interested in purchasing an existing home, new data indicates other less traditional housing options are becoming more attractive for those with affordability constraints.
The National Association of Home Builders (NAHB) estimates that the median price for a new single-family home in the fourth quarter of 2025 was $405,300, or $9,600 lower than the median price of an existing home. The median new home price was down 3.34% compared to a year earlier, while existing home prices have remained relatively flat or slightly increased year-over-year.
Mortgage rates, supply widening price gap
The trend of existing home prices exceeding new home prices is a recent phenomenon. NAHB data indicates new homes were significantly more expensive than existing homes from 2010 to 2019, with the average difference around $66,000. That gap narrowed at the start of the Covid-19 pandemic and has persisted, with existing homes becoming more expensive than new homes in five of the past seven quarters.
Onnah Dereski, NAHB's manager of economic services, explained that both new and existing home prices shot up during the early days of the pandemic when 30-year mortgage rates had dropped into the 3% range. However, prices moved in different directions as rates pushed up into the 6-7% range.
"New homes prices have moderated due to tactical builder business decisions, whereas existing homes prices continue to increase because of lean supply," Dereski wrote in an online post. Those decisions include building on smaller lots, constructing smaller homes and offering buyer incentives, Dereski added.
Falling mobile home prices present an opportunity
Manufactured homes can offer a less costly housing option — and new data indicates they're becoming even more affordable.
The median listing price for a mobile home in February was $141,450 — down 5.7% year-over-year, according to a Realtor.com study. Like new and existing homes, manufactured structures saw a surge in prices during the pandemic, but those prices have recently dropped off.
Most mobile homes are located in the Sun Belt, with Florida serving as one of the most concentrated areas, according to the report. A separate NAHB analysis citing U.S. Census Bureau data found that the nation's Mountain region also has a high concentration of manufactured homes.
"While the broader market remains a challenge for many, the mobile home sector is currently offering one of the most efficient entry-points into the market," said Joel Berner, senior economist at Realtor.com. "For those who prioritize flexibility and lower cost burdens, the current price dip in the mobile home sector provides a compelling window to move from renting to owning."
Possible changes on the horizon for mobile home construction
The 1990s was a peak time for manufactured home shipments, with a new home share of around 24% in 1998. But production in the 21st century has stabilized, the NAHB noted, hovering generally around 9-10% of new home production.
Changes could be coming to manufactured home construction if the Senate-backed 21st Century ROAD to Housing Act becomes law. Part of the bipartisan housing package calls for the removal of the steel chassis — used to move the homes to different locations — that manufactured homes are required to have. Since most mobile homes don't actually move, making this optional would streamline construction and allow for more multi-story designs, Berner said.