The new construction market in the Tri-Cities has delivered a year of growth and opportunity, but also signs of cooling and transition. As we compare Year-to-Date (January 1–March 31, 2025) data to the Past 12 Months, we begin to see how builder strategies, buyer behavior, and pricing pressures are evolving in real time.
This report focuses on new construction single-family homes in Kennewick, Richland, Pasco, and West Richland and provides a side-by-side analysis to understand how the market is performing as 2025 unfolds.
1. Inventory & Market Activity: Faster Listings, Better Absorption
| Metric | Past 12 Months | Year to Date (Q1 2025) |
|---|---|---|
| Total Listings | 905 | 246 |
| Listings per Day | 2.48 | 2.7 |
| Total Sales | 498 | 132 |
| Sales per Day | 1.36 | 1.45 |
| Sold-to-Listed Ratio | 55% | 53.7% |
Insight: Listing activity has slightly increased in 2025, but sales are also keeping pace. With a consistent sales-to-listings ratio around 54–55%, builders are managing inventory well. The marginal increase in absorption rate suggests that the new construction segment is holding steady, even as overall volume remains smaller than the resale market.
2. Days on Market: Trending Faster for 2025
| Metric | Past 12 Months | Year to Date (Q1 2025) |
|---|---|---|
| Average DOM (Sold Homes) | 129 days | 120 days |
| Median DOM (Sold Homes) | 90 days | 89 days |
Insight: While new construction homes still take longer to sell than existing homes (due to build timelines and pre-sales), DOM is trending downward in early 2025. This indicates that buyers are committing faster than they did over the past year. Builders may be optimizing pricing, improving marketing, or adjusting delivery timelines to boost buyer confidence.
3. Pricing Trends: Consistency, Not Escalation
| Metric | Past 12 Months | Year to Date (Q1 2025) |
|---|---|---|
| Avg. Original List Price | $577,520 | $566,982 |
| Median List Price | $509,900 | $495,495 |
| Avg. Sold Price | $550,661 | $560,258 |
| Median Sold Price | $491,375 | $492,250 |
| Avg. Price per Sq. Ft. | $282.42 | $287.06 |
| Median Price per Sq. Ft. | $282.79 | $289.16 |
Insight: Despite a slight drop in average list prices, sold prices have remained flat or increased slightly—especially on a price-per-square-foot basis. This points to strong pricing discipline by builders and steady demand from buyers willing to pay for newer homes with modern features. It also reflects a market that is balancing supply and demand well, rather than overreaching with price hikes.
4. Buyer and Seller Dynamics: A Gradual Shift in Advantage
| Metric | Past 12 Months | Year to Date (Q1 2025) |
|---|---|---|
| Buyer Score | 5.7 | 4.3 |
| Seller Score | 4.3 | 5.7 |
Insight: This is one of the most notable changes: buyer conditions have worsened, and seller leverage has improved in 2025. While the market remains more balanced than the resale segment, builders are seeing fewer concessions and better terms. The reversal of buyer/seller scores suggests a subtle but meaningful shift toward a more confident seller environment, where discounts are less necessary and inventory is being absorbed more efficiently.
5. Home Size and Affordability: Stable Product Offerings
| Metric | Past 12 Months | Year to Date (Q1 2025) |
|---|---|---|
| Avg. Sq. Ft. (Sold Homes) | 1,964 sq ft | 1,956 sq ft |
| Median Sq. Ft. | 1,840 sq ft | 1,802 sq ft |
Insight: The typical size of sold homes has remained virtually unchanged, suggesting builders are continuing to target mid-sized homes in the most in-demand price brackets. This also supports the stable pricing trend, as builders are not shifting dramatically toward smaller or more affordable products—or toward larger, luxury builds.
Overall Market Insight: Gradual Strengthening in 2025
The new construction segment is not accelerating, but it is becoming more efficient and slightly more favorable for builders. Here’s what the comparison reveals:
- Sales are keeping pace with listings, maintaining strong absorption.
- DOM is improving, albeit modestly, signaling stronger buyer confidence.
- Pricing is stable, with price-per-square-foot increasing slightly even as list prices have dipped.
- Seller advantage is rising, with improved seller scores and fewer concessions.
Final Takeaways
- For Buyers: The window for negotiating discounts may be closing. If you’re looking for a new build, it’s wise to act early in the year before seller confidence tightens further.
- For Sellers/Builders: Conditions are improving. Inventory is moving slightly faster, and pricing is holding. Builders should remain competitive but can approach Q2 2025 with cautious optimism.
- Market Direction: The new construction market appears to be strengthening in early 2025, not with rapid price gains, but with stabilized turnover, improved seller leverage, and faster deal flow.
Final Thoughts
The first quarter of 2025 shows that the Tri-Cities new construction market is steadying and becoming more seller-favorable. While price growth remains flat, builder-side confidence is rising due to faster absorption and less downward pricing pressure. Buyers still benefit from more inventory than in the resale market—but they’re no longer in full control of the conversation.
For expert advice on how to price, buy, or market new construction in today’s evolving landscape, contact ryan@kenmoreteam.com or call 509.987.4544. We’re here to help you navigate what’s next in Tri-Cities real estate.