{"id":188649,"date":"2026-07-16T08:43:46","date_gmt":"2026-07-16T14:43:46","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=188649"},"modified":"2026-07-16T08:43:49","modified_gmt":"2026-07-16T14:43:49","slug":"major-homebuilders-have-not-sold-homes-this-cheap-in-nearly-a-decade-heres-how-investors-can-take-advantage","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/major-homebuilders-have-not-sold-homes-this-cheap-in-nearly-a-decade-heres-how-investors-can-take-advantage","title":{"rendered":"Major Homebuilders Have Not Sold Homes This Cheap in Nearly a Decade\u2014Here\u2019s How Investors Can Take Advantage"},"content":{"rendered":"

Editor\u2019s Note:\u00a0<\/strong>Thanks for reading! As a special offer for our readers, save $100 on your ticket to\u00a0BPCON2026<\/a>\u2014BiggerPockets\u2019 annual real estate investing conference\u2014using code\u00a0MYRE100<\/strong>\u00a0at checkout.<\/em><\/p>\n

For truly <\/span>passive real estate investing<\/span><\/a>, buying deeply discounted new-construction homes might be the low-stress solution that is hiding in plain sight.<\/span><\/p>\n

The conventional idea of BRRRR investing can be a turnoff for many. Spending hours driving for dollars, looking for deals, buying a fixer-upper, hiring a contractor, hoping you don\u2019t go over budget, and then haggling with the bank about the appraisal and interest rate when you refinance is only for the truly committed.<\/span><\/p>\n

The \u201cPass\u201d in Passive<\/span><\/h2>\n

The \u201cpass\u201d in passive is there for a reason. <\/span>Many people <\/span>simply<\/span> don\u2019t have the time or inclination to commit to buying rentals.<\/span> For investors who want a truly passive income vehicle, buying a new-construction home with built-in builder discounts and a waiting pool of qualified, high-paying tenants might be just what you have been waiting for.\u00a0<\/span><\/p>\n

The good news is that prices for new construction have plummeted, and builders are offloading them like eggnog in January. The result is that small investors have a real shot at <\/span>cash flow<\/span><\/a> with brand-new homes they didn\u2019t have to break the bank to buy. The country\u2019s largest builder, Lennar, said its average sales price fell to about<\/span> $371,000<\/span><\/a> in its latest quarter.\u00a0<\/span><\/p>\n

Why This Window Has Opened<\/span><\/h2>\n

The affordability crisis has meant that builders need to meet buyers at a price point they can afford if they want to move inventory. That means low prices, high incentives, and mass volume.<\/span><\/p>\n

Lennar co-CEO Stuart Miller said on an <\/span>earnings call<\/span><\/a> regarding the price drop:<\/span><\/p>\n

\u201cDemand, however, is still high, as people want and need homes. Millennials are hitting the buying age and are realizing the benefit and perhaps imperative of homeownership, but affordability and waning confidence around buying now are sending confusing signals. I don\u2019t want to overstate the negative, as the market is definitely not crashing, but it continues to cool.\u201d<\/span><\/em><\/p>\n

NAHB\u2019s data<\/span><\/a> found that about 35% of builders were cutting prices by an average of 5% to 6% in June, while roughly 61% were offering credits such as investor closing-cost credits and mortgage rate buydowns. <\/span>NAHB\u2019s 2026 housing outlook<\/span><\/a> also said townhouse construction had jumped to a multi-decade high of just over 18% of single-family starts, reflecting the market\u2019s shift towards more affordable homes in multi-planned communities.<\/span><\/p>\n

The Metros With the Best New-Build Cash Flow<\/span><\/h2>\n

If you <\/span>really <\/span><\/em>want a deal, everything is bigger in Texas, and that includes cash flow, especially around San Antonio and Houston, where discounts and rents make the perfect two-step for investors.<\/span><\/p>\n

The Lone Star State is out on its own when it comes to cash flow for new construction. A recent <\/span>Texas investment guide<\/span><\/a> found that gross rental yields typically range from 5% to 7% in Dallas, 6% to 8% in Houston, and 7% to 9% in San Antonio, while net yields generally run 2% to 4% lower after expenses.<\/span><\/p>\n

Another Houston-based <\/span>guide<\/span><\/a> states, \u201cFor instance, a $320,000 property renting at $2,200 per month yields a gross return slightly above 8%. This performance surpasses many coastal markets and holds up well against comparable suburban markets across the Sun Belt. Success hinges on acquiring the right property at the right price, where in-depth submarket knowledge becomes a significant competitive edge for investors.\u201d<\/span><\/p>\n

Cash Flow Analysis: Houston and San Antonio New-Build Communities<\/span><\/h2>\n

In late 2025, <\/span>BiggerPockets<\/span><\/a> highlighted<\/span> Lennar\u2019s Investor Marketplace<\/span><\/a> as a platform offering turnkey new homes in more than 90 markets, including some three-bedroom homes in San Antonio priced under $150,000. Rental comps, warranty coverage, and investor-oriented workflows are included to streamline buy-and-hold acquisitions.<\/span><\/p>\n

Let\u2019s not kid ourselves that a builder\u2019s magic wand, sprinkling incentives such as rate buydowns and closing cost credits, is going to magically wipe away the 6.5% rate environment we are in, but it can make a difference.<\/span><\/p>\n

For example, assume a new-build three-bedroom townhouse in a master-planned community (MPC) in Houston is purchased for $315,000 after incentives, consistent with stronger cash flow markets. With 20% down, the investor borrows $252,000. A 6.2% rate on a 30-year mortgage puts the PI around $1,540. Add $525 for taxes, insurance, HOA, and maintenance reserves, and total carrying costs are about $2,065.<\/span><\/p>\n