Out-of-Town Buyers Drive New Home Construction Demand

Out-of-town home shoppers are significantly influencing the new-construction market, a trend driven by the availability of price incentives and larger property sizes, with budget-friendly Sun Belt locations experiencing the strongest demand. Homebuyers routinely explore markets beyond their local areas online, but this tendency is particularly pronounced for those specifically seeking newly built homes, according to the latest quarterly New Construction Insights report from Realtor.com®. Nationally, buyers from outside the immediate metropolitan area constituted over 67% of page views for newly constructed homes during the spring season. This figure compares to approximately 65% for existing homes, indicating that demand for new homes is more likely to originate from external buyers than for resale properties, a pattern observed across both urban and suburban markets. In several metropolitan areas, predominantly situated in the well-supplied Southern United States, out-of-town buyers represent the overwhelming majority of activity in the new-construction sector. Lakeland, Florida, leads this trend, with out-of-metro shoppers accounting for more than 83% of new-construction views in the second quarter. Following closely are Cape Coral, Florida, at 82.4%; Port St. Lucie, Florida, at 80.9%; North Port, Florida, at 80.5%; and Durham, North Carolina, at 80.2%. Other popular destinations for external buyers interested in new housing inventory include Deltona, Florida; Charleston, South Carolina; Stockton, California; Augusta, Georgia; and Greenville, South Carolina. The appeal of new construction for these buyers stems from competitive pricing in these specific metros. Realtor.com senior economist Joel Berner explained that out-of-metro buyers, who may not have initially considered new construction, often discover that many new builds fit within their budget filters. Brian Stephens, a real estate agent and team leader with eXp Realty in Lakeland, has observed a substantial influx of buyers from outside the local market who are attracted to new builds due to their location and the generous concessions offered by builders. Stephens noted to Realtor.com that these builders often have more available inventory and are willing to cover buyers' closing costs or even reduce their interest rates, making new construction a more attractive option compared to resale homes.