Lower-Priced New US Single-Family Home Sales Have Fallen Since 2020

According to the US Census Bureau’s Survey of Construction (SOC), with analysis by the National Association of Home Builders (NAHB), total sales of new single-family homes declined by 17% between 2020 and 2024.

At the same time, the median sales price rose sharply—from $330,900 in 2020 to $420,300 in 2024—intensifying affordability challenges for prospective buyers, especially those seeking homes in lower price ranges.

NAHB highlights a notable shift in the distribution of new-home sales by price range over this period. Sales of homes priced under $300,000 dropped by 65%, while those in the $300,000–399,999 range fell by 10%. In contrast, sales of higher-priced homes surged: Sales of homes priced between $800,000 and $999,999 more than doubled, and those priced at $1 million or more rose by 85%.

As a result, the market share of lower-priced homes shrank significantly. In 2020, homes under $300,000 accounted for 40% of new single-family sales, making them a dominant segment. By 2024, they had fallen to the third largest, overtaken by homes priced at $300,000–399,999 and $400,000–499,999. At the same time, the share of higher-priced homes expanded, reflecting a broader shift toward more expensive construction and reduced affordability.

NAHB notes that this trend is evident across all four US regions, although the degree of change and affected price ranges vary by geography. From 2020 to 2024, new-home sales declined in every region: down 28% in the West, 14% in the Midwest, 13% in the South, and 8% in the Northeast. These declines were driven primarily by steep drops in lower-priced home sales.