The State of New Construction

MARKET REPORT

The State of the Market

From the salty environs of Maryland’s Eastern Shore to the rolling landscapes of Virginia Hunt Country, the Mid-Atlantic is among the most desirable housing markets in the United States.

Indeed, due to its increasingly competitive job market, its high quality of public and private schools, and its enviable location on the eastern seaboard, the Mid-Atlantic offers what few can match.

So, for those seeking to build a custom home in the Mid-Atlantic, what is to be expected?

First, in our sample markets, new construction homes represent roughly 10% of home sales in the Mid-Atlantic. Of those new construction home sales, 37% were sold as completed versus non-completed. Completed homes earned a roughly 20% price premium over new construction homes sold as non-completed.

Among the most expensive new construction homes sold in the Mid-Atlantic for the year ending 2024 was a spectacular waterfront home in McLean, Virginia.

Featuring stunning views of the Potomac River, the home — known as The Cliffs — features over 32,000 square feet of interior living space as well as 5 acres of immaculately landscaped grounds. The home was completed in 2022 and sold for $25.50 Million in October 2024 after 138 days on the market.

“As we reflect on the top new construction home sales in the Mid-Atlantic, the Washington Metropolitan Area stands as the largest and most prolific geographic area,” says Byron V. Hughey, Vice President at TTR Sotheby’s International Realty.

“While transaction volume may be higher in other regions, pricing power is most evident in markets such as McLean, Virginia, Bethesda, Maryland, and Washington, D.C.”

For those seeking to purchase a detached new construction single family home in the Mid-Atlantic, you can expect to pay an average of $337.96 per square foot and an average total sales price of $1.09 Million. Detached new construction single family homes in the Mid-Atlantic tend to feature 1.41 acres and 2,785 interior square feet.

In terms of total new construction home sales, the historic coastal enclave of Lewes, Delaware accounted for over 440 total transactions in 2024, outpacing nearby Millsboro, Delaware by almost double. As evidenced by total sales transaction volume, Sussex County, Delaware represented over 51% of all new construction home sales in our sample.

So how do these figures compare to national averages?

According to the National Association of Home Builders (NAHB) Cost of Constructing a Home Survey for 2024, the national average cost to build a new construction home is $665,298. Sitting on roughly one half acre, this equates to roughly $251.34 per square foot.