Why More Buyers Are Turning to New Construction Homes in 2025 — Especially in Los Angeles and Beverly Hills, CA

There’s a growing trend taking shape across the U.S. real estate market — and it’s especially visible here in Los Angeles and Beverly Hills. More homebuyers are turning to newly built luxury homes than at any point in the past two years. According to the latest U.S. Census data, new home sales just hit their highest level in over two years, signaling renewed buyer confidence and opportunity for those ready to make a move.

Why New Homes Are Attracting Today’s Buyers

In the past, purchasing a new construction home often meant paying a premium. But in today’s market, it can actually mean getting a better overall deal. Builders across California and beyond are offering strong incentives to attract qualified buyers — and savvy Angelenos are taking notice.

Builders are currently offering:

• Mortgage rate buydowns to reduce monthly payments

• Substantial price adjustments from peak 2022 levels

• Closing cost assistance and luxury upgrade packages in select developments

In fact, analysts report that nearly 60% of new home communities now offer financial or design incentives, with over 75% extending offers for quick move-ins — homes that are fully completed and ready for immediate occupancy.

As real estate analyst Nick Gerli notes:

“Builders are adjusting to the realities of the current housing market. They’ve cut prices 13% from the peak and are giving generous mortgage rate buydowns on top of that.”

That means buyers in Los Angeles, Beverly Hills, and the Westside may be able to secure a lower purchase price anda lower monthly payment — a rare combination in our luxury market.

️ New Construction Is Expanding — Especially in the West

Recent Census data shows that the South and the West lead the nation in new home availability — and Southern California is at the heart of that trend.

• West Region: 110,000 new homes available

• South Region: 295,000 new homes available

In the Beverly Hills, Bel-Air, and Brentwood corridors, new luxury developments have been strategically designed to meet the expectations of today’s global elite: open-concept floor plans, integrated smart home systems, sustainable energy efficiency, and seamless indoor-outdoor living — features that are simply non-negotiable for many of today’s discerning buyers.

Meanwhile, in areas like West Hollywood, Beverly Grove, and the Bird Streets, new contemporary builds and high-end spec homes are appearing with more competitive pricing than in the last few years, thanks to builder incentives and increased inventory.

This means buyers seeking the perfect blend of modern design and timeless elegance — especially those relocating from overseas or out of state — now have more options and negotiating power than they’ve seen in years.

Why This Window Won’t Last Forever

Builders are currently motivated to sell, but the pace of new construction is beginning to cool. According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB):

“There are currently 621,000 single-family homes under construction — down nearly 4% from a year ago. This is the lowest level since early 2021 as builders pull back on supply.”

That means the abundance of choices and incentives available today won’t last forever. Once this current inventory sells, new construction prices may climb again — especially in ultra-prime Beverly Hills and Los Angeles markets, where land is limited and replacement costs are rising.

Final Thoughts

If you’ve been waiting for the perfect time to buy a brand-new home, this may be it. With builders offering rate buydowns, design credits, and closing cost assistance — coupled with more inventory across the West — buyers finally have the leverage they’ve been waiting for.

Whether you’re eyeing a contemporary hillside retreat in Bel-Air, a newly built Mediterranean villa in Beverly Hills Flats, or a smart-tech residence in West Hollywood, let’s connect. I’ll help you compare incentives across multiple developments and negotiate the most advantageous deal — ensuring your next home is as smart a purchase as it is beautiful.

“Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value