New Construction Brings Price Cuts, but Homeownership Still out of Reach for Many

‘Housing is becoming more affordable; however, it’s not affordable in absolute terms,’ analyst Stephen Kates said.

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

The relentless rise in America’s home prices appears to be cooling and even shifting into reverse in some markets due to new construction, but buying a home still remains out of reach for many households, analysts say.

According to a May 5 report by the U.S. Census Bureau, the median price for a new home came down this year, from $409,000 in February to $387,400 in March, a 5.3 percent decrease. The possibility of homeownership may be edging closer, but market watchers says prices are still too high for many Americans.