Price Premium for New Homes in Fargo-Moorhead Hits All-Time Low

By Christopher Leigh, Vision Realty Team
August 7, 2025

Powered by Vision Realty’s Local Market Insights

The price premium for new-construction homes over existing homes has dropped to an all-time low, a trend now reaching the Fargo-Moorhead area, according to the latest Realtor.com® economic research. At Vision Realty, we’re seeing this shift firsthand as it opens doors for local buyers in neighborhoods like The Wilds and South Fargo.

In the second quarter of 2025, the median listing price for a newly built home nationally held steady at $450,797, while existing-home prices rose 2.4% to $418,300. Here in Fargo-Moorhead, the gap is even narrower—new homes list at approximately $430,000, just 7.5% above the median existing-home price of $400,000, based on our local market data. This marks the smallest premium since tracking began in 2016, making new builds more competitive.

“Even with a national housing shortage of nearly 4 million homes, affordable new construction is key to balancing our local market,” says Christopher Leigh, Vision Realty’s lead agent. “Builders in the Red River Valley are keeping pace, delivering homes at a steady clip to meet demand in growing areas like West Fargo.”

On a square-foot basis, new homes in Fargo-Moorhead are now priced at about $210 per square foot, slightly below the $215 per square foot for existing homes—a rare affordability edge. However, this varies across our region, with some premium new developments in Golden Valley still commanding higher rates.

Local Trends in New-Home Inventory

The South, including our corner of North Dakota and Minnesota, leads the nation in new-home inventory, making up over 50% of listings despite representing just 39% of U.S. households. In Fargo-Moorhead, new-construction listings have jumped 35% since 2020, outpacing the 15% growth in existing-home inventory. This surge is evident in subdivisions like Eaglewood and Prairie Meadows, where builders are adapting to local needs.

Despite this progress, our region still faces a housing shortfall, estimated at thousands of units, due to years of underbuilding. Vision Realty is here to guide you through these opportunities, whether you’re eyeing a new build or an existing home.

Where New Home Prices Are Shifting Locally

In the last quarter, new-home prices in some Fargo-Moorhead-adjacent markets saw declines, reflecting national trends. While not among the top 100 metros, nearby areas like Grand Forks, ND, reported a 6% drop, influenced by high inventory and cooling demand. Locally, Vision Realty notes modest price adjustments in new developments, offering buyers leverage in negotiations.

Nationally, metros like Little Rock, AR (-15.6%) and Austin, TX (-8.5%) lead price drops, while rising markets like Syracuse, NY (+18.8%) and Los Angeles (+16.1%) contrast with our stable growth. In Fargo-Moorhead, the focus remains on value, with builders offering incentives to attract buyers in competitive neighborhoods.

Vision Realty’s Take

This trend toward affordability is a game-changer for Fargo-Moorhead homebuyers. Whether you’re considering a new home in Horace or an existing property in Moorhead, now’s the time to explore your options. Contact Vision Realty at (701) 715-4747 or chris@visionrealty.us for a free consultation and to browse our latest listings tailored to this market shift.

Disclaimer: Information is based on Realtor.com® data and Vision Realty’s local insights. Market conditions can change, and all real estate decisions should be made with professional advice.