While new home sales across the U.S. have slowed this spring, San Diego is bucking the trend. According to Realtor.com, a recent analysis from John Burns Research and Consulting shows that out of 50 major metro areas, only four were rated “strong” new construction markets, and San Diego made the list alongside Orange County, Chicago, and Indianapolis.
Unlike areas in Florida and Texas, where new-build sales have slowed dramatically, San Diego continues to show steady buyer demand. Even with active listings up year over year, our inventory remains below pre-pandemic levels. That scarcity, paired with high desirability, is allowing builders to maintain momentum and price points.
In fact, the median sale price for a new construction home in San Diego is around $1,026,000. These homes are moving faster than most in the country, thanks to consistent local demand and a long-standing undersupply of housing. According to Realtor.com’s senior economist Jake Krimmel, that limited inventory means San Diego builders aren’t having to rely as heavily on incentives or price cuts, unlike other parts of the country.
It’s worth noting that San Diego and Orange County were recently downgraded from “very strong” to simply “strong,” due to some softening trends. Affordability challenges, higher mortgage rates, and broader economic uncertainty are tempering price growth, but not enough to halt the market entirely.
For sellers, this continued strength in the new construction space is good news. Even if you’re not selling a brand-new home, a healthy builder market means buyer activity is still present, and interest in San Diego’s housing market remains high. New homes often set pricing benchmarks in neighborhoods and help drive momentum throughout the resale market.
At The Nathan Group, we help sellers navigate this unique moment, where inventory remains tight, but pricing strategies need to be precise. Whether you’re considering listing your home soon or just want to better understand how current new construction trends affect your property value, we’re here to help.
Source: Realtor.com, “New Homes Are Flying Off the Shelves in These 4 Metros—Defying the National Trend of Sluggish Sales,” June 2025.
