North Texas homebuyers are seeing a rare alignment in the new construction market. Elevated inventory and slowed construction starts have combined to shift market conditions in homebuyers’ favor – at least for now.

Home Inventory Is Creating a Temporary Advantage

Following a national trend, new construction starts have fallen in the DFW area, dropping 12.3% in 2025, with a sharp 17.7% year-over-year decrease in the fourth quarter. At the same time, the region has roughly 12,000 finished but vacant new homes.

Rather than breaking ground on new projects, builders are focused on selling completed homes before the spring surge.

For buyers, that means two things: choice and incentives. Today’s wide selection of move-in-ready homes is a high-water mark that is unlikely to be replenished soon. To move this inventory, builders are increasingly offering incentives.

Builder Incentives Are at Record Levels

Nationally, 65% of builders are offering incentives, with a record 41% cutting prices – a post-COVID high. In DFW, we’re also seeing elevated incentive levels as builders respond to easing demand and longer selling times.

The most valuable incentives are the “Big Three”:

    • Mortgage Rate Buydowns: The builder pays to lower your interest rate, which can significantly reduce your initial monthly payments.
    • Closing Cost Credits: The builder covers upfront fees such as appraisals and title insurance, commonly reducing what the buyer must bring to the closing table by thousands of dollars.
    • Free Upgrades: The builder offers extras such as premium finishes and appliance packages at no added cost.

Financing Strategy Determines Your Actual Savings

Builder incentives often come with a significant catch: the "preferred lender." In some cases, this "preferred" option steers buyers to an in-house subsidiary or an outside partner of the builder who may charge higher interest rates.

However, federal law prohibits a builder from requiring you to use their lender. This is where mortgage guidance from the experts at First United becomes essential. As mortgage professionals with a deep understanding of the local market, we can help you navigate incentives.

As part of that strategy, mortgage pre-approval is one of the most powerful tools a homebuyer has. Buyers who arrive with verified pre-approval show builders they are serious, making it more likely they'll unlock the best available incentives.

DFW's high inventory and increased incentives have created a buyer-friendly moment that will likely fade once spring momentum returns. To take advantage of this unique opportunity, call us at (972) 591-3097 or connect with us online.