Hey St. George! If you've written off new construction as "too expensive," it might be worth a second look.

For most of the last several years, new homes cost more per square foot than older ones. That's flipped. Here's what we're seeing, and how to use it whether you're buying or selling.

Here's What We're Seeing Nationally

Zillow published an analysis on September 29 comparing new and existing homes. The headline: newly built homes sold for a median of $205 per square foot in July, below the $212 median for existing homes.

• It's a reversal. New homes cost more per square foot in 77 of 84 months from 2018 to 2024.
• It's not a one-off. New homes have sold at a discount in 17 of the past 19 months.
• Closer to home: in the Salt Lake City metro, new homes ran $247 per square foot in July versus $268 for existing homes.

Why? Supply. Builders have a lot of homes to move, so they're more willing to cut prices and offer incentives like rate buydowns. Zillow also notes that resale owners sitting on low rates and solid equity have less reason to drop their price.

One honest caveat: Zillow says this isn't a like-for-like comparison. A new home and a 20-year-old home can differ a ton in lot size, finishes and location. We'd treat it as directional, not gospel.

The Latest New-Home Numbers

The Census Bureau's September new-home sales report, released October 27, backs this up:

• Sales pace: 676,000 a year, down 0.6% from August and 5.3% from a year ago.
• Median new-home price: $400,400, down 3.9% from September 2025.
• Supply: 476,000 new homes for sale, an 8.4-month supply.

Zillow's take on that report is that builders are focused on moving inventory and building smaller, more affordable homes. In September, 70% of new homes sold for under $500,000, up from 66% a year earlier.

And Here in Washington County

New construction is everywhere here, from Desert Color to Washington and Hurricane. So it's a real part of the decision for most of our buyers.

The resale side has more choices too. The Utah Association of REALTORS® September report for Washington County shows:

• Inventory: 2,355 homes for sale, up 12.8% from a year ago, a 6.0-month supply.
• Median sales price: $499,495, down 3.6% year over year.
• Sellers received 95.9% of original list price on average.

That's a buyer-friendly mix. Builders want to move homes, and resale sellers are competing with them.

What It Means for Buyers

• Shop both sides. Don't rule out new construction on price alone. Compare the full deal, not just the sticker.
• Ask about incentives. Rate buydowns and closing-cost help can change your monthly payment more than a small price cut.
• Bring your own agent. The builder's sales rep works for the builder. We'll compare comps, read the contract and push on incentives for you.
• Check the details. Lot size, HOA fees, landscaping and window coverings aren't always included. Budget for them.

What It Means for Sellers

• You're competing with builders. Buyers touring your home are often touring a model home the same weekend.
• Price to the market from day one. With about six months of supply, overpriced homes sit.
• Lean on what new builds can't offer. Mature landscaping, bigger lots, established neighborhoods and no construction next door. Show it off.
• Consider your own incentives. A seller-paid buydown can go head to head with a builder's offer.

Bottom Line

New or resale isn't a one-size-fits-all answer. Right now, though, you've got real leverage on both sides of that choice. It pays to compare them side by side.

Thinking about buying or selling in St. George or anywhere in Southern Utah? Let's talk. We're happy to walk you through new builds and resales in your price range, with no pressure. Reach out to us here. We're here to help!

Sources

1. Zillow Research, "In One-Third of Major Markets, New Homes Cost Less Per Square Foot Than Existing Homes," Sept 29, 2026: https://www.zillow.com/research/new-construction-cost-square-foot-2026/
2. U.S. Census Bureau / HUD, Monthly New Residential Sales, September 2026, released Oct 27, 2026: https://www.census.gov/construction/nrs/current/
3. Zillow Research, "New Home Sales Declined in September as Builders Focused on Inventory Management," Oct 27, 2026: https://www.zillow.com/research/new-home-sales-september-2026/
4. Utah Association of REALTORS® / ShowingTime, Local Market Update for September 2026, Washington County (current as of Oct 10, 2026): https://uar.stats.showingtime.com/docs/lmu/x/WashingtonCounty?src=map

The Genuine Group | Brokered by Red Rock Real Estate