Yes, you can still find new construction under $500K in North Texas, mostly in smaller floor plans, townhome-style product, and communities farther from the busiest Frisco and McKinney corridors. The advertised base price rarely equals the finished price, so verify the homesite, options, and written incentives before counting any home as truly under the line.
Can you still buy new construction under $500K in North Texas?
Yes, but it takes a sharper search than it used to. New construction under $500K in North Texas exists, mostly as smaller floor plans, townhome-style product, and homes farther from the busiest Frisco and McKinney corridors. The advertised “starting at” price is rarely what you’ll actually pay, so confirm the specific homesite, options, and incentives before you count any home as truly under the line.
Key Takeaways
- Realtor.com’s 2026 affordability analysis found DFW newly built homes 8.9% more expensive than existing homes, which is why the under-$500K slice of new construction is a squeeze.
- The same analysis ranked DFW No. 22 among the 25 leading U.S. new-construction metros and noted one of the larger shares of builders cutting prices, which gives informed buyers room to negotiate.
- The July to September 2026 median sale price for all home types was $549,435 in Craig Ranch and $676,810 in Light Farms, so a sub-$500K new build in the northern corridor is a narrower target than the area median.
- A builder’s base price is not the price of a specific finished home, because lot premiums, structural options, and design selections can move it.
- Only a current builder and MLS search can tell you how many qualifying homes exist in Frisco or McKinney today, because inventory changes week to week.
Where can you find new construction under $500K in North Texas?
Start in the northern corridor around McKinney and Frisco, then widen the search outward and toward smaller product types. The price you want is usually found by adjusting product type and distance, not by finding a secret neighborhood.
Product type matters more than the city name
When I run this search for clients, the homes that land under $500K tend to be one of three things:
- Smaller floor plans on standard or compact lots.
- Townhome, patio-home, or other attached or low-maintenance product instead of a detached two-story.
- Completed or nearly completed inventory that a builder wants to move, sometimes with a price reduction.
A larger detached plan in a master-planned community with heavy amenities will usually cost more. If your priority is square footage, the budget shifts. If your priority is a new roof, new systems, and a builder warranty, the search shifts the other way.
Why the area medians show how narrow the target is
Here is what recent closed sales show for two northern-corridor communities. These are medians for all home types, not new construction only, so don’t read them as new-build prices. They show where the broader market sits relative to your $500K ceiling.
| Area | Median Sale Price | Homes Sold |
|---|---|---|
| Light Farms | $676,810 | 31 |
| Craig Ranch | $549,435 | 33 |
Both medians sit above $500K. A home under that number in these communities is possible, but it’s the lower slice of what’s available. Expanding to other north and east suburbs, or to a different product type, is how most of my buyers get under the line. If you want to see how I think about the northern suburbs overall, my breakdown of where new homes are being built in McKinney is a good companion read.
How far out do you have to go?
Prices generally ease as you move farther from the busiest, most established corridors, but the exact tradeoff changes by community and builder. I’d rather run a live search for you than give you a mileage rule that’s wrong next month. A realistic search includes the communities I know well, such as Painted Tree, Trinity Falls, and Mustang Lakes, plus others as the numbers dictate. Treat each as a starting point and confirm its current inventory and pricing before you get attached.
Are new homes under $500K in Frisco and McKinney still realistic?
They’re realistic in some cases, but the number of qualifying homes changes constantly, so a live builder and MLS snapshot matters more than any list in a blog post. I won’t tell you a specific count of sub-$500K new homes in either city, because that number would be stale quickly.
What the 2026 data says about competition
A 2026 affordability analysis from Realtor.com, reported by CultureMap Dallas, found that DFW newly built homes were 8.9% more expensive than existing homes. The same report placed DFW at No. 22 among the 25 leading U.S. new-construction metros and said the region had one of the larger shares of builders reducing prices.
Here’s how I read that for a buyer:
- The new-home premium is real, which is why the under-$500K range is tight.
- Price reductions mean builders are competing with each other and with resale homes.
- A reduction on one community’s inventory doesn’t mean every builder is discounting, so each offer has to be checked on its own.
I won’t claim any builder is offering a specific concession without a dated, written offer in front of me. Incentives change, and what’s advertised on a banner isn’t always what’s in your contract.
Frisco versus McKinney
Whether McKinney is cheaper than Frisco for a newly built home depends on the product type, lot size, and community, not on the city name alone. The only reliable answer is a side-by-side search of current inventory. If you’re deciding between them, start with my look at McKinney new construction trends in 2026 and the broader Collin County new construction buyer guide, then let me run the numbers on your specific criteria.
What should you compare besides the base price of a new home?
Compare the full finished price of the specific home, not the base price in the ad. A builder’s “starting at” figure often refers to a basic plan on a standard lot, which may not be the home you’re actually touring.
Before you treat a listing as under $500K, get the following in writing for the exact homesite:
- Lot or homesite premium, if any.
- Structural options already included or still to be added.
- Design selections (flooring, cabinets, countertops, fixtures) and whether upgrades are priced separately.
- Appliance package and what stays with the home.
- Estimated completion date and what happens if it slips.
- Incentives, including who offers them, what they require, and whether they’re tied to a particular lender or closing date.
- HOA dues and any additional community assessments that affect your monthly cost.
I can’t give you a dollar figure for these additions, because they vary by builder, plan, and lot, and any number I made up would mislead you. What I can do is get the documentation on a specific home and show you what the finished price actually looks like.
Move-in ready or still being built?
Both exist. Some homes are completed and ready for a near-term closing, while others are to be built or under construction with a projected completion date. Ask the builder which category your home falls into, because it changes your timeline, your rate-lock decisions, and your housing plan in between.
New versus resale
If the numbers don’t work on new construction, a recent resale home may deliver more space for the same budget. I cover that tradeoff in Dallas-Fort Worth new construction versus resale homes. It’s worth reading before you commit to one path.
How do you compete for new construction under $500K in North Texas?
Know your real monthly budget first, build a live shortlist of qualifying homes, and compare finished prices before you tour too many. Preparation is what lets you move when the right home shows up.
- Set your monthly number before you shop. A builder’s pricing sheet can stretch quickly with options and lot premiums, so decide what monthly payment is comfortable for you before a lender tells you what you can borrow. If you’re not sure what $500K means for your income, my post on the salary needed for a $500K home in Dallas-Fort Worth is a useful reality check.
- Build a live shortlist. Pull current builder inventory and MLS listings, then verify each home’s price, city, product type, estimated completion date, and whether the advertised figure is a base price or the price of that specific home.
- Compare finished prices side by side. Put the lot premium, options, and incentives in one place for each home so you’re comparing like with like.
- Read the builder’s contract carefully. A builder contract is not the same as a standard resale contract, so review it before you sign.
- Consider an independent inspection. New doesn’t always mean flawless, and a second set of eyes is inexpensive peace of mind.
- Have your own representation. The builder’s sales team works for the builder. Ask about the builder’s policy on buyer’s agents before your first visit, and loop in your own agent early.
Closing on a new home in Texas runs through a title company, which handles the settlement and the handling of funds. I’ll walk you through what to expect so nothing surprises you at the table.
Your specific search depends on your budget, your timeline, and what you’re willing to trade, whether that’s square footage, lot size, or distance. That’s exactly the kind of question I walk my clients through before we ever tour a model.
Finding new construction under $500K in North Texas comes down to verifying the real price of a specific home, and that’s where I add the most value. If you’d like me to pull a current snapshot of qualifying homes and compare them for you, schedule a consultation and we’ll build your shortlist together.
If you’d like to see how I work with buyers, you can read my reviews on Google, Zillow, and Realtor.com.
FAQ
Where can I find new construction homes under $500,000 in the Dallas–Fort Worth area?
Start with builder inventory pages and a current MLS search in the northern suburbs, then widen to communities farther north and east. Smaller floor plans, townhome-style product, and completed inventory are where sub-$500K homes most often turn up. I can pull a live list for you so you’re not relying on stale advertising.
Are there still new homes under $500,000 in Frisco?
It’s possible, but the number changes week to week and I won’t quote a count that could be out of date. In Frisco the qualifying homes tend to be limited by product type and lot size. A current builder and MLS snapshot is the only way to know what’s available today.
Is McKinney cheaper than Frisco for a newly built home?
It depends on the community, plan, and lot, not on the city name alone. The best comparison is side by side, using the finished price of specific homes. I can run that comparison for your criteria.
Do builders offer incentives on DFW homes priced below $500,000?
Some do, and the 2026 Realtor.com analysis noted that DFW had one of the larger shares of builders reducing prices. Incentives vary by builder and community, so get any offer in writing with its terms and dates before you count on it.
How far from central Dallas or Fort Worth do I need to go to stay below $500,000?
There’s no single distance that works, because pricing varies by community, product type, and builder. In general, prices ease as you move farther out, but a smaller plan closer in can sometimes beat a larger one farther away. Tell me your priorities and I’ll narrow the search.
Equal Housing Opportunity. Jason Feller, Texas Real Estate Broker, Feller Realty. Regulated by the Texas Real Estate Commission (see the TREC Consumer Protection Notice and Information About Brokerage Services). This article is general information, not legal, tax, or financial advice; confirm your own numbers with your title company, tax advisor, or lender.