In Madison, new construction homes cost $484,900 compared to $400,000 for the typical home, a difference of $84,900, according to a June 15 report from Clever Real Estate, a matching platform that connects home buyers and sellers with real estate agents.
Nationally, new construction costs $52,565 more than a typical home, the report said.
New construction makes up 17% of all home sales in Madison, which is trying to ramp up housing development to align with projected population growth. That compares to 15% nationally.
Nationally, new home sales totaled 571,213 in 2025 out of more than 3.7 million home sales overall.
Despite slightly falling prices since 2025 (-3.9%), new homes are still significantly more expensive than they were five years ago.
Over the past five years, the median price of new homes has grown 21.6% nationally, outpacing overall home price growth of 13.3%.
New construction’s share of the U.S. housing market dropped from 20% in 2023 to 15% in 2025.
The biggest difference between new construction and existing homes is in Miami ($600,000), while new construction is the best value in San Francisco, costing $85,000 less than the typical home.
San Francisco was among only four U.S. metros to offer new construction at a lower price than the typical home. They also include Austin, Texas (-$72,041), Honolulu, Hawaii (-$67,298) and Cape Coral, Florida (-$20,000).
