King County’s New Construction Homes Now Cheaper—Than Resale Listings

Last month, brand new homes in King County are actually selling for less than their resale counterparts. In May, the median price for a newly built home was about $1,099,925, compared to $1,135,000 for an existing home.

But here’s the twist: not only are these new builds less expensive, they’re also

shrinking. The average size of a new single-family home built in King County has dropped from 2,601 sq ft in 2019 to 2,427 sq ft in 2024—a decrease of 174 sq ft.

Why are new homes getting smaller? Builders are responding to several economic

realities. The cost of building materials has surged in recent years due to inflation and

ongoing supply chain disruptions. Labor costs are also up, as wages for skilled workers

have climbed across the region. On top of that, land prices remain high, and interest

rates are keeping buyers extra price-sensitive.

To stay competitive and keep prices attractive to more buyers, some builders are scaling back on square footage and, and in some cases, simplifying finishes and features. By offering slightly smaller homes at a lower sticker price, they can meet demand from buyers looking for new construction without stretching their budgets so much.

If you’re considering new construction, keep in mind that prices and styles can vary

dramatically from city to city, and even neighborhood to neighborhood. It’s always smart

to compare what’s available in your specific area before making a move.