The short answer: builders keep building because they already invested years and hundreds of thousands of dollars long before you drove past the construction site. That investment is sunk. They can pause, but pausing often means writing off massive costs. For buyers who need to move now, that creates real negotiating leverage.

Why builders keep building even when demand cools

• Approvals and planning take years. In many markets it is common for subdivision and development approval to take two to four years or more. That is the minimum timeline from land acquisition to breaking ground.
• Large upfront costs are unavoidable. Developers pay for land, surveys, engineering, planning commission applications, road work, utility hookups, and sometimes state-level infrastructure work. Those expenses are not easily recouped if the project stalls.
• Regulatory coordination adds time and cost. Developers coordinate with planning commissions, traffic engineers, environmental regulators, school districts, and other agencies to make a new community feasible.
• Contractors and schedules are already committed. Subcontractors, material orders, and crews are lined up months in advance. Canceling or pausing can be expensive and logistically painful.
• Sunk-cost pressure. Once that much time and money has been poured into a development, the economics often force builders to continue construction and attempt to adjust pricing or incentives on the back end.

What that means for buyers in 2025

If you do not absolutely have to buy right now, my advice remains the same: wait and watch what happens in 2026. But for many people waiting is not an option—job transfers, military moves, caregiving needs, or family changes mean buyers still need housing today. If you are in that position, new construction can be a great place to use the leverage builders are facing.

Market realities

• Inventory is rising in many areas and mortgage rates are still elevated. In some markets there is six months or more of inventory.
• Smaller builders will feel the squeeze first. We have already seen smaller builders file bankruptcy in stressed markets; larger national builders are not immune either.
• Builders want sales. A house sitting unsold is costing them money every day—so they are often willing to offer concessions rather than let lots remain vacant.

How to negotiate with new construction right now

Do not assume new construction is fixed-price and non-negotiable. In the current cycle you should be aggressive. Here is a practical game plan I use with buyers:

1. Bring a realtor. Never walk into a builder’s model alone. A good agent will track comparable listings and sales, protect your interests, and negotiate on your behalf.
2. Ask for everything. Request price reductions, rate buydowns, seller-paid closing costs, upgrades, appliances, and any other concessions you can imagine. Builders would rather give concessions than leave a house unsold.
3. Use comparable stock to your advantage. If the model down the street is listed at a lower price or has incentives, you can and should push for parity.
4. Time your visit. End-of-month timing can increase your leverage. Sales teams often want to hit monthly goals and are more inclined to escalate approvals to corporate at those times.
5. Be prepared for pushback. On-site agents will sometimes say they need corporate approval. That is normal. Stay firm and be willing to walk away if the numbers do not make sense.

“Close mouth, don’t get fed. Ask for the kitchen sink.”

A real example of what works

Here is a real negotiation that illustrates the leverage buyers can have.

• Floor plan: roughly 3,200 square feet.
• Standard list price: $575,000.
• Nearby completed home of the same plan: listed at $527,900.
• What we negotiated: matched the $527,900 price, a 5-year rate buydown to 3.75 percent (builder paid the buydown), and seller-paid closing costs including the VA funding fee.

My client used a VA loan. Remember that VA loans have a funding fee that can be around 3.3 percent for repeat users. Asking the builder to cover that fee is reasonable in this market when the home is already partially finished and the builder wants a sale.

The builder initially pushed back, saying selling at that price would be a loss. We went through the selections and let them run it by corporate. Because the lot was already partially finished and another buyer had fallen out, corporate approved the concessions. The result was a deal that made the purchase affordable for my buyer and moved inventory for the builder.

Practical negotiation checklist for new construction

• Bring your agent and your lender if possible.
• Know comparable list prices and recent sales for the same floor plans.
• Ask for price parity with finished inventory if similar homes are listed lower.
• Request a mortgage buydown and ask the builder to pay it.
• Ask the builder to cover closing costs, including any VA funding fees.
• Request appliances, upgrades, or credits for future upgrades instead of paying out of pocket.
• Time your offers near the end of the month when sales teams feel more pressure to close.

When you should still wait

If you do not need to move immediately, waiting remains a smart option. The market could evolve in the next 12 to 18 months, giving you more inventory, lower prices, or better rates. If your timeline is flexible and you can afford to hold off, patience could pay off.

Final thoughts

Builders cannot easily stop building because so much happens before you ever see a shovel in the ground. That creates opportunity for buyers who must move now. Be aggressive, bring professional representation, and ask for everything. The worst the builder can say is no. The best outcome is a substantial concession that makes the home affordable and moves inventory off the lot.

If you are buying new construction, go in prepared, know the comps, and negotiate like you mean it. Ask for the world. You might be surprised at what the builder is willing to give up rather than have another lot sit unsold.