Why More Buyers Are Choosing New Construction—and How to Make It Work for You

Have you noticed more friends talking about buying brand-new homes lately? You’re not imagining things—new construction is catching the eye of more buyers than ever. As your trusted Texas Hill Country luxury Realtor, I’m excited to share why this shift is happening, and how you can take advantage of what builders are offering right now.

New Construction vs. Resale: What the Numbers Say 📊

Let’s start with a quick look at the latest national sales trends. In the first quarter of 2025, sales of new single-family homes climbed to 184,000 units—up 1.1% from the same time last year. Meanwhile, existing-home (resale) sales averaged about 4.12 million per month, which is actually a slight dip from last year’s 4.14 million. So, while the resale market is holding steady, new homes are quietly gaining ground.

Why Are Buyers Flocking to New Builds?

There’s more to the story than just numbers. Builders are rolling out the red carpet for buyers with perks that go way beyond just a fresh coat of paint. Here’s what’s making new construction so appealing:

• Rate Buydowns: Some builders are helping buyers snag lower mortgage rates, making monthly payments more manageable.
• Generous Incentives: Think closing cost help, upgraded appliances, or even design credits to personalize your home.
• Warranties: Peace of mind comes standard with most new builds, covering major systems and appliances for years to come.
• Modern Features: Open floor plans, energy-efficient systems, and smart-home technology are now the norm, not the exception.
• Community Amenities: Many new developments offer pools, parks, walking trails, and vibrant community centers.
• The Privledge of Creating the Home of Your Dreams: With custom home building from the dirt up comes the opportunity to create your home exactly the way you want it.

Not All New Homes Are Created Equal: Three Tiers of New Construction

When I talk with clients about new construction, I like to break it down into three main tiers—because not every “new build” is the same! Here’s a quick guide to help you find your best fit:

• 1. Production Homes
  Price: Around $200K–$1M
  Timeline: 4–12 months
  Customization: Pre-selected finishes with limited upgrades
  Best for: Buyers looking for a quick close and the best financing incentives. These homes are built efficiently, often in larger communities, and offer great value for those who don’t need a lot of custom touches.
• 2. Custom Spec Homes
  Price: About $1M–$2.5M
  Timeline: 12–18 months
  Customization: Choose cabinetry, tile, and paint depending on the point in the build in which you secure the home
  Best for: Buyers who want a little more luxury and personalization without going fully custom. This is the sweet spot for many Hill Country buyers who love designer finishes but want to skip the stress of building from scratch.
• 3. Full Custom Builds
  Price: $2.5M and up
  Timeline: 18–24 months or more
  Customization: Total control—from lot selection to architectural design to the site plan to the light fixtures and countertops
  Best for: Cash buyers or those investing in a long-term estate. Just keep in mind: premium finishes and custom details often take several years to recoup their value if you’re thinking about resale down the road. I tell custom build clients they won't be able to sell for a profit, typically, for at least 5 years and can expect to pay approximately 15% to 25% more over buying a resale.

How to Leverage Builder Perks to Your Advantage 🏡

Thinking about making a move? Here’s how to make the most of what builders are offering:

• Ask About Incentives: Don’t be shy—builders often have promotions that aren’t advertised online.
• Compare Warranty Coverage: A strong warranty can save you thousands down the road.
• Explore Community Options: From family-friendly neighborhoods to quiet retreats, there’s something for everyone.
• Work With a Realtor: I can help you navigate builder contracts, negotiate extras, and ensure you’re getting the best possible deal. AND the builder pays for me to do this for you...NOT YOU!

Common Misconceptions About Buying or Building New Construction 🛠️

With all the excitement around new homes, I hear a lot of myths that can trip up even the savviest buyers. Let’s set the record straight on a few of the most common misconceptions:

• “You don’t need a third-party inspection on a new home.” – FALSE!
  While it’s true that builders arrange their own inspections, these are primarily for their benefit—not yours. An independent inspection almost always reveals issues that might otherwise go unnoticed. With your own inspector, you gain extra leverage to have the builder fix problems before you close and move in. It’s peace of mind you can’t afford to skip. I also recommend my clients to have the inspector come back out before the end of the first year of their warantee expires to report any other claims to the builder while you are in the most generous portion of your warantee.
• “If you buy new or hire a custom builder, you don’t need a Realtor.” – FALSE!
  Many buyers think they’ll save money by going it alone, but here’s the truth: builders already factor in the cost of buyer representation. Their sales agents work for the builder—they’re not your fiduciary. You deserve someone in your corner, advocating for your best interests, and the builder covers that cost. Don’t leave your investment unprotected!
• “Custom builders will do anything you want, with any materials you want.” – FALSE!
  Not all “custom builders” are created equal. Some have strict limitations on what materials or design ideas they’ll incorporate. Just because a builder uses the word “custom” doesn’t mean you’ll have total creative freedom. I’ve worked with many builders throughout San Antonio and the Hill Country, and I can help you sift through the options to find the right fit for your vision and budget.

Bottom line: New construction is a fantastic opportunity, but it pays to have an expert on your side. If you’re considering building or buying new, let’s connect—I’ll help you navigate the process and avoid these common pitfalls! Here's a link to my Youtube with some tours with Luxury Home Builders

Dreaming of Building from the Ground Up? Three Standout Land Opportunities

If you’re not quite ready to pick a floor plan or start construction, you might want to consider securing the perfect piece of land first. Here are three premier parcels currently available in the Texas Hill Country that could be the canvas for your future dream home:

• Canyon Lake Waterfront: Imagine over 100 feet of private shoreline with breathtaking water and hill views—perfect for those who want lakeside living with room to grow.
• Fredericksburg Hilltop (20 acres): At 1,700 feet elevation, this property offers stunning 360° vistas. It’s an ideal spot for a vineyard, equestrian retreat, or simply soaking in the Texas sunsets.
• Monteola, Bulverde (5 acres): This is the first lot available in four years in a gated, oak-lined enclave—just minutes from downtown Bulverde. A rare find for those seeking privacy and convenience.

New construction is gaining ground thanks to creative builder incentives and robust warranties, while resale homes continue to offer stability. Whether you’re drawn to a quick-move production home, a luxury spec build, a fully custom estate, or one of these extraordinary land sites, the right strategy and expert representation can make all the difference.

If you enjoyed these insights, don’t forget to like and subscribe for more Texas Hill Country real estate updates! Drop a comment below on which option you’d explore first. I’m Malina Bercher—let’s turn your real estate dreams into reality!