---
title: Buyers Priced Out of Big Cities Are Finding Cheaper New Homes in the South
description: Two-thirds of new-home shoppers look outside their metro, chasing affordable Southern builds. What the low sticker price leaves out.
author: Darie Nani (Editor-in-Chief)
updated: 2026-08-26T15:18:45.873Z
canonical: https://richdadmagazine.com/article/buyers-cheaper-new-homes-affordable-south-2026
image: https://cdn.nanimediahouse.com/new-homes-south-migration-209879.webp
categories: Real Estate
content_type: Analysis
region: United States
publication: Rich Dad Magazine
schema_type: Article
---

More than two-thirds of the people clicking on brand-new houses this spring were shopping somewhere other than the city they live in. In the second quarter of 2026, Realtor.com reported that 67.2% of views on new-construction listings came from buyers in a different metro than the home for sale, above the 65.4% out-of-metro share for existing homes. The pull is strongest in the affordable South, and for a household weighing whether to buy a new construction home in another state, the sticker price is only the opening question.

## Shoppers priced out of Miami are landing in Lakeland

The metros drawing the most outside interest cluster in Florida and the Carolinas. Lakeland-Winter Haven, Florida, topped the list: 83.1% of its new-construction views came from outside the metro, at a median new-build listing price of $315,821. A large share of that interest traces back to [Miami, Orlando and Tampa, where a Lakeland new build runs a fraction of Miami's $1.94 million median](https://www.realtor.com/news/trends/out-of-towners-flocking-new-construction-q2-2026-report/). Cape Coral-Fort Myers drew 82.4% of its views from outside, including Miami, New York City and Chicago, at a $496,102 median. Farther north, Durham-Chapel Hill in North Carolina pulled 80.2% of its interest from other metros at a $486,395 median.

## New homes cost more than resales, but builders discount them harder

Nationally, the median new-build listing price was $450,256 in the second quarter, down 0.1% from a year earlier. That is a small decline, but it is the report's first annual drop since early 2025. Existing homes had a median of $408,317, down 2.0%, which pushed the new-construction premium up to 10.3% from 8.2% a year ago. New homes are the pricier option on paper, yet builders are quicker to mark them down: 20.0% of new-construction listings had a price cut, against 18.6% of existing listings, the third straight quarter builders led on cuts. "New construction is increasingly a destination for buyers who are willing to look beyond their current metro in search of more attainable options and a different lifestyle," said Joel Berner, a senior economist at Realtor.com.

## A warranty and paid closing costs are the sales pitch

Affordability is why this migration exists. Over the past three years, home prices grew about twice as fast as incomes, 30-year mortgage rates more than doubled above 7%, and the typical mortgage payment rose about 89%. To keep sales moving, builders are subsidizing the rate itself. John Burns Research and Consulting surveyed more than 100 production builders and found [60% are using mortgage-rate buydowns to close sales, a benefit that can cost the builder up to 6% of the sale price](https://jbrec.com/insights/buydowns-deliver-for-builders-and-buyers/). Brian Stephens, a real estate agent and team leader with eXp Realty in Lakeland, said out-of-market buyers respond to those concessions. Builders "offer to pay for the buyers' closing costs and even buy the interest rate down," he said, adding, "Why purchase a resale when you can purchase a new home and get a warranty and everything is brand-new?"

## After two years, a 2-1 buydown resets to the full rate

The catch sits in the terms. Not every builder rate buydown lasts the life of the loan. A common version, the 2-1 buydown, lowers the mortgage rate for the first two years and then steps up to the full rate, so the monthly payment climbs on reset. Builders themselves told John Burns that temporary buydowns do not solve affordability, which is why only 30% commit to a full-term 30-year buydown, often reserving that more durable deal for first-time buyers. Before signing, ask which kind you are being offered, because a payment that feels manageable in year one can look very different in year three.

## Florida buyers pay steep insurance and HOA bills after closing

A low purchase price in Florida arrives with bills the listing does not mention. Home insurance in the state is among the most expensive in the country, and 2023 legal changes made it harder for owners to challenge denied claims or low payouts, with many reporting more denials since. The state is a hurricane magnet, and climate-driven damage keeps pushing premiums up. Homeowners association fees are climbing as well, roughly 5.7% nationally over the past year, driven by double-digit increases across much of Florida. After the 2021 Surfside condo collapse, state rules now require associations to fund reserves and pay for structural inspections, which has produced steep special assessments. One Orlando community was told its monthly fees would nearly triple, with a one-time assessment of up to $22,000.

## Online interest is not the same as a closed sale

The report measures where people look, not where they close. A listing view records interest, and much of that out-of-state clicking never becomes a signed contract. The affordable metros are real and the incentives are real, but the number that decides whether a move pays off is the all-in monthly cost: the payment after any buydown resets, plus insurance and association dues. Price the whole thing, not the headline, before you move across the Sun Belt for a cheaper new build.

## FAQ

**Q: What are the cheapest new-construction metros for out-of-town buyers right now?**
Among the metros drawing the heaviest out-of-metro interest, Lakeland-Winter Haven, Florida, is the most affordable in the report, with a median new-build listing price of $315,821, well under the national new-build median of $450,256. Cape Coral-Fort Myers and Durham-Chapel Hill draw similar outside interest but at higher medians, near $496,000 and $486,000.

**Q: Can you live in one state and buy a home in another?**
Yes. It is common, and increasingly so among new-home shoppers: 67.2% of views on new-construction listings in the second quarter of 2026 came from buyers in a different metro than the home. You can research, tour and close remotely, though you will want a local agent and a clear-eyed read on the carrying costs, since insurance and HOA rules vary sharply by state.

**Q: What is a builder rate buydown, and is it a good deal?**
It is a builder-paid subsidy that lowers your mortgage rate. A temporary 2-1 buydown cuts the rate for the first two years and then resets to the full rate, so the payment rises later. A full-term 30-year buydown holds the lower rate for the life of the loan and is more durable, but it can cost the builder up to 6% of the sale price, so only about 30% of surveyed builders offer it. The full-term version is the stronger deal for a buyer who plans to stay; a temporary buydown only helps if you can afford the payment after it resets.