If you’ve been exploring new homes around Sacramento—from Elk Grove to Roseville—you may have noticed more builder promotions popping up. The local housing market has cooled slightly, which means many builders are getting creative with incentives to attract buyers.
For anyone thinking about buying new construction in the Sacramento area, this shift could open the door to major savings and added perks.
At The Sherri Patterson Team, we’re here to help you make sense of it all—why builders are offering these incentives, what’s motivating them, and how you can use these offers to your advantage. Let’s dive in!
A Slow New-Build Market
Over the past year, the housing market has slowed a bit—not just for resale homes, but for new-construction as well. Inventory for new homes continues to climb, with roughly 490,000 new houses available at the end of August 2025—about 4% higher than the same time last year, according to U.S. Census data.
Despite this increase, sales of new single-family homes have remained relatively mild throughout 2025, suggesting that many buyers are still hesitant to jump in, even with more options on the market. Combined with higher mortgage rates and ongoing affordability concerns, this market has encouraged builders to get creative—offering a variety of incentives to attract buyers instead of holding firm on price.
Builders Taking Action
To move inventory and stay competitive, builders have been ramping up their incentives—and the trend is gaining momentum. One of the most common perks today is the mortgage-rate buydown, where the builder pays or subsidizes part of the interest rate to help buyers secure lower monthly payments.
In fact, a recent report shows that more than two-thirds of new-home communities are currently advertising this type of incentive. Many builders are combining multiple offers—such as rate buydowns, closing-cost credits, and upgraded finishes—to stand out in a competitive market. While most prefer to keep base prices steady to preserve community values, there’s been a noticeable uptick in promotions, especially for quick move-in homes.
The reasoning is simple: holding unsold inventory costs money in financing, maintenance, and taxes, so it’s often smarter for builders to offer incentives and move homes faster.
5 Incentives to Look Out For When Browsing New Homes in Sacramento
Want to take advantage of these new-build perks? Here are five builder incentives you should keep an eye on, and what to ask when you see them:
- Mortgage Rate Buy-Downs
Builders may offer to pay ‘points’ or subsidize part of the interest rate so your monthly payment is lower. This can make owning more affordable right from the start. - Closing Cost Credits
Some builders will cover a portion (or all) of the buyer’s closing costs—these are the fees you pay at closing and less cash up front. - Free or Discounted Upgrades / Design Center Credits
Builders may include premium finishes, appliance packages, upgraded flooring, or offer “flex dollars” you can use toward custom features at no extra cost. These help you get more value for your investment. - Price Reductions or Discounts on Inventory Homes
Especially for homes that are already built or near-completion, some builders reduce the price or offer a stronger discount compared to speculative builds. - Extended Rate Locks or Flexible Move-In/Closing Schedules
Because new builds sometimes have longer timelines, builders may allow you to lock in your interest rate for an extended period or offer flexible closing dates so you don’t feel rushed or stuck owning two homes temporarily.
If you’re considering a new home in the Sacramento area, now could be an ideal time to take a closer look at new-construction options. Still, not every incentive fits every buyer, so having a trusted local expert in your corner can make all the difference.
That’s where The Sherri Patterson Team comes in. With decades of experience and deep roots in the Sacramento market, we know how to navigate builder offers and uncover the true value behind the fine print. Whether you’re curious about the latest new-home communities or ready to start touring, we’re here to guide you through every step.
Let’s find the right new build—and the best deal—for your next chapter in Sacramento.
