On average, new homes have become more affordable than existing ones, and in some local metros, a new home can be purchased at a significant discount. According to a recent report from real estate marketing platform Zillow, newly built homes sell for a median of $205 per square foot nationally, which is below the $212 median for existing homes.

Where are buyers seeing the biggest discounts on new homes?

The markets that typically see significant discounts for new homes are located in the Sun Belt, where new-home supply is much higher than the nationwide average. In Austin, for instance, new homes are 19% cheaper per square foot than existing homes, they’re 14% cheaper in Raleigh, N.C., and San Diego, and in Tampa, Fla., they’re 12% cheaper.

Where are house hunters buying the most new homes?

Nationwide, new-home sales made up about 12.6% of overall home sales over the last year. However, in high-supply markets where new homes are cheaper, that share is much higher. In San Antonio, for instance, the share of new homes sold over the past year reached 37.1%, and in Raleigh, N.C., the share reached 33.6%.

Still, existing-home sales remain strong in the Northeast and Midwest

However, where new construction is more rare, existing homes have a higher discount. In the New York City metro, new homes have a 64.9% price-per-square-foot premium, and in Cleveland, the premium is 50.7%. In Milwaukee, there's a 46% premium for new homes, and in Detroit, the premium for new homes is 44.5%.