Less Than 11 Percent of New Construction Is in Urban Areas, Report Finds

The report shows that nearly 80 percent of new homes for sale are located in suburban areas, compared with more than 55 percent of existing homes.

Construction workers build a home at a new housing development in Hercules, Calif., on July 1, 2025. Justin Sullivan/Getty Images

Newly built homes across America are scarce in urban areas and carry a significant price premium, according to a new report.

In its May 7 New Construction Insights Report, Realtor.com indicated that only 10.9 percent of new residential construction listings are located in urban areas, and potential buyers may pay 78.4 percent more for these properties than for existing homes.