As 2025 gets underway, the Tri-Cities housing market continues to move—but not all segments are behaving the same. In this update, we focus specifically on the new construction market for single-family homes across Kennewick, Pasco, Richland, and West Richland. The data covers activity from January 1 through March 31, 2025, offering a fresh look at inventory trends, pricing, buyer demand, and how builders are responding to current market conditions.
Year to Date (2025)
- Total Homes on Market per Day: A total of 246 new construction homes were listed, averaging 2.7 new listings per day.
- Homes Sold per Day: 132 homes sold in this period, equating to 1.45 sales per day.
- Average and Median Prices:
- Original Listing Price: Average of $566,982, median of $495,495
- Final Sold Price: Average of $560,258, median of $492,250
- Buyer’s Score: 4.3
- Seller’s Score: 5.7
These numbers reflect a more balanced market for new construction compared to the existing home segment, with neither buyers nor sellers dominating negotiations.
Market Highlights and Trends
Inventory and Sales Volume
With 246 new listings and 132 sales, just over half of the available new homes found buyers during the first quarter of 2025. This means buyers have more options when it comes to new construction, especially compared to the faster-moving resale market. Builders are continuing to bring inventory to market, but absorption rates remain moderate.
Pricing and Affordability
- The average sold price of $560,258 is nearly 8% higher than the average sold price in the existing home market during the same period.
- However, the gap between list and sold prices is small—just about 1.2% on average—indicating that while new homes are more expensive, pricing is fairly consistent and not drastically reduced during negotiations.
This suggests that new construction remains a premium option, often more expensive but with modern features and efficiency that appeal to today’s buyers.
Days on Market
- Average DOM (sold homes): 120 days
- Median DOM: 89 days
New construction homes are taking significantly longer to sell than existing homes—more than twice as long on average. This is partly due to longer build timelines, but also a sign that buyers are taking their time before committing, possibly comparing against resale options.
Home Sizes and Price per Square Foot
- Average square footage (sold): 1,956 sq ft
- Median square footage: 1,802 sq ft
- Average price per square foot: $287.06
- Median price per square foot: $289.16
These figures reflect the premium pricing of new construction, with price per square foot about 17% higher than the existing home market. However, these homes are often brand new, built in 2024 or 2025, and come with modern layouts and energy efficiency features that many buyers value.
Buyer and Seller Dynamics
- Buyer Score: 4.3 – Buyers had moderate leverage, with some room for negotiation and a broader selection of available homes.
- Seller Score: 5.7 – Builders maintained a slight advantage, closing many deals close to list price, even with longer time on market.
Compared to the existing construction segment—where sellers dominate—new construction remained more neutral, with a slight tilt in favor of sellers due to stable pricing.
Summary of Key Insights
- Inventory Growth: New listings are increasing at a steady pace, providing options but contributing to longer time on market.
- Sales Pace: Homes are moving slower than resale properties, giving buyers more time to evaluate their options.
- Premium Pricing: New construction is priced higher both in total and per square foot, but price reductions are minimal.
- Balanced Market Conditions: With neither buyers nor sellers in full control, negotiations are centered on value and quality, not urgency.
Final Thoughts
The new construction market in the Tri-Cities is holding steady through the first quarter of 2025. While it doesn’t have the rapid pace of existing home sales, it offers consistency, modern features, and a more deliberate buying experience. Buyers have more time and choices, while builders are seeing solid—but not rapid—movement in inventory.
If you’re considering buying new, this is a good time to explore your options before peak season heats up. Sellers—particularly builders—should focus on competitive pricing and standout features to attract buyers in a market that rewards value.