Home Sales Slide as More Markets Lose Momentum

Market moved from few housing options, to one where consumers now have choices

NEWPORT BEACH, Calif., June 23, 2025 /PRNewswire/ -- Zonda's May 2025 New Home Market Update shows we've moved from a market where consumers have few housing options, to one where they are spoiled for choice.

• On the resale front, supply has notably increased with 60% of the top markets boasting more inventory than in 2019.
• The rental market — particularly in Sunbelt areas — has also seen a surge in new apartments, which has meant cooling rents and a rise in concessions for renters.

"Consumers find themselves asking a lot of questions today," said Ali Wolf, chief economist for Zonda and NewHomeSource. "When asking 'should I buy now or wait?', the answer for many is to wait. For 'new or existing?', new homes often come out on top. And when it comes to 'rent or buy?', renting is frequently the winning choice. The housing industry must continue exploring innovative strategies that position purchasing a new home as the most compelling choice compared to renting or buying a resale property in today's market."

While the national new home market still has lower supply levels compared to 2019, competition has notably increased. Beyond just incentives, many consumers are now seeking price cuts. There were 682,290 new homes sold in May on a seasonally adjusted annualized rate. This fell 0.9% from last month and a drop of 5.8% from a year ago.

🏷️Pricing continued to be mixed 
Zonda's monthly survey showed 38% of builders lowered prices in May (35% in April), 57% held prices flat (49% in April), and 6% raised prices (16% in April).

• Entry-level fell 1.4% to $328,007 year-over-year
• Move-up fell by 0.4% to $520,193 year-over-year
• High-end is up by 1.0% to $918,161 year-over-year

🌳Community counts ticked up for 6^th straight month
There are 16,278 actively selling communities, up 8.6% from last year (+0.7% from last month).

• Orlando (+21.9%), Raleigh (+14.2%), and Charlotte (+12.8%) grew most year-over-year
• Philadelphia (-14.4%), Minneapolis (-11.4%), and Washington, DC (-11.0%) had the biggest year-over-year declines

🧳Quick move-ins moved up year-over-year (QMIs can be occupied within 90 days)
National QMIs totaled 36,123, up 18.9% from last year but fell 1.3% month-over-month. On a metro basis, 72% of Zonda's select markets increased QMI count year-over-year.

• Seattle (+135.0%), New York (+101.7%) and Salt Lake City (+83.2%) grew most year-over-year
• Sacramento, Jacksonville, and Phoenix grew most compared to the same time in 2019, up 248.3%, 240.6%, and 181.2%, respectively

See the full report including data and analysis.
Find the latest in housing, home design, and buyer trends at NewHomeSource.com/news.

Also, visit ZondaHome.com or follow us on LinkedIn for more information. Zonda tracks 85% of the production new home market across the United States.

About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.

About NewHomeSource (NHS)
NewHomeSource.com is America's #1 source for consumers as they search for new construction communities and homes. NewHomeSource also has the most extensive collection of ratings and reviews for homebuilders nationwide. As the only independent source of reviews from verified homebuyers, TrustBuilder delivers the honest insights you need to make decisions with confidence.

Media Contact: Diane Begin
[email protected] | (224) 836-5615

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