Vicinity - New Construction Authority
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    Buyer Guide

    Are New Construction Homes Cheaper in {city}, {stateCode}?

    In Houston, it's close to a wash, your decision should come down to specific community fees, lender incentives, and how long you plan to stay.

    Written and reviewed by Carla Goddard, Founder & CEO, Vicinity. Last reviewed September 12, 2026.

    Houston median price snapshot

    Median new construction
    $385,000
    $165/sqft
    Median resale (comparable)
    $335,000
    $175/sqft

    Sticker price difference: New is $50,000 more (15%). On a per-sqft basis, new is 6% lower than resale.

    The Houston market take

    Houston has MUDs (Municipal Utility Districts) instead of CDDs, same idea, similar carrying cost. Property taxes are high (2.2 - 2.8%) which hurts new builds assessed at full value.

    Current builder incentives in Houston

    Typical 2026 offer: $10K to $20K closing credit + 5.99% rate

    Run the 24-hour Loan Estimate test with the builder's preferred lender and one outside lender. In Houston right now, the builder buy-down typically saves $30K to $50K over 5 years vs market rate, large enough to flip the price math in favor of new construction.

    Most active builders in Houston

    LennarDR HortonPerry HomesWestin HomesDavid Weekley

    Hot new construction submarkets near Houston

    Cypress
    High new construction volume in 2026.
    Katy
    High new construction volume in 2026.
    The Woodlands
    High new construction volume in 2026.
    Sugar Land
    High new construction volume in 2026.

    Explore all Houston-area neighborhoods →

    Get the real numbers for a specific Houston community

    Vicinity shows HOA, CDD, lot premiums, and builder incentives for every community in the Houston area. A local new-construction specialist will run a side-by-side cost comparison for the homes you're considering.

    Explore Houston Neighborhoods →Find a Houston Specialist

    Related

    National guide: cheaper than resale?
    The full national framework this page applies locally.
    Closing costs on new construction
    How builder incentives actually work, line by line.

    Houston New vs Resale FAQ

    What's a MUD tax and how much does it add in Houston?
    Most Houston master-planned communities (Cypress, Katy, Sugar Land) sit in MUDs that issue bonds for water, sewer, and drainage infrastructure. MUD rates typically run $0.30 to $1.00 per $100 of assessed value, on a $385K home, that's $1,150 to $3,850/year on top of base property tax. → See community fees on local neighborhoods
    Are Houston new construction homes built to higher flood standards now?
    Yes. Post-Harvey, Harris County requires new construction in 500-year floodplains to be elevated above the 500-year flood elevation. Always pull the LOMA/elevation certificate and check the development's drainage detention requirements before signing. → View neighborhood flood & fee details
    How do Houston ISDs compare for new construction families?
    Katy ISD, Cy-Fair ISD, and Tomball ISD lead the west/northwest new construction corridor with strong academics and new schools opening regularly. Fort Bend ISD (Sugar Land, Sienna) is the strongest southwest. All have grown rapidly with rooftop expansion. → Browse neighborhoods by school zone
    What's the median price difference between new construction and resale in Houston?
    In Houston, the median new construction home is $385,000 vs $335,000 for a comparable resale, about a 15% premium. On a per-square-foot basis, new construction is 6% less expensive than resale. → Browse new construction here
    What builder incentives are common in Houston right now?
    Most national builders in Houston are offering $10K to $20K closing credit + 5.99% rate when you finance with their preferred lender. That's typically worth $30K to $50K over 5 years vs taking an outside lender at market rate, large enough to flip the price math. → Compare builders in this market
    Are there CDD or special assessments in Houston?
    Houston does not use Florida-style CDDs, but many new communities have HOA capitalization fees ($500 to $3,000 at closing) and ongoing HOA dues. Texas communities often use MUDs (Municipal Utility Districts) which add a similar line to your property tax bill. → See community fees on local neighborhoods
    Who are the most active new construction builders in Houston?
    The most active builders in the Houston market are Lennar, DR Horton, Perry Homes, Westin Homes, and David Weekley. Each runs different incentive programs, always shop 2 - 3 against each other before signing. → Compare builders in this market
    Which Houston-area neighborhoods have the most new construction?
    Cypress, Katy, The Woodlands, Sugar Land are currently the highest-volume new construction submarkets in the Houston area. Phase 1 releases in newly-opened communities tend to offer the best lot pricing. → Browse new construction here