Today's housing market looks dramatically different than it did just a few years ago. High mortgage rates, affordability challenges and limited resale inventory have forced buyers, builders and real estate professionals to adapt. While many agents continue to focus primarily on existing homes, new construction has quietly become one of the biggest opportunities in the market.
During a recent .RealEstate webinar, Paulo Neto, Founder & CEO of NEO and former executive at one of the country's largest home builders, shared an inside look at how builders are navigating today's market—and what agents need to know to better serve their clients.
If you missed the live session, we've highlighted some of the biggest takeaways below. Be sure to watch the full webinar at the end of this article for even more insights.
One of Paulo's central themes was that today's housing market shouldn't be viewed as an isolated downturn—it should be viewed as part of a larger real estate cycle.
Drawing on more than two centuries of market history, he explained that real estate has historically moved through recurring phases of recovery, expansion, speculation and correction. While every cycle is driven by different events, successful real estate professionals share one common trait: they recognize where the market is headed and adapt before everyone else.
Rather than waiting for conditions to improve, Paulo encouraged agents to prepare for today's realities and position themselves where opportunity already exists.
Perhaps the biggest takeaway from the presentation was just how important new construction has become.
A decade ago, newly built homes represented roughly 10% of available inventory. Today, they account for nearly one-third of the homes available nationally. Ignoring new construction means overlooking a significant portion of today's housing opportunities.
For agents working in competitive markets with limited resale inventory, understanding builder communities, financing incentives and available inventory has become an essential part of serving buyers effectively.
Many agents still assume new construction automatically comes with a higher price tag. According to Paulo, that mindset is increasingly outdated.
Builders have shifted their focus from simply selling new homes to creating affordable monthly payments through strategies such as:
Rather than competing solely on purchase price, builders are competing on monthly affordability—often allowing buyers to qualify for more home while keeping payments comparable to or even lower than resale properties.
As Paulo explained during the webinar, today's buyers aren't simply shopping for a house—they're shopping for a monthly payment. Agents who understand that shift will be better equipped to guide clients toward opportunities they may not have otherwise considered.
One of the webinar's most valuable sections offered a behind-the-scenes look at how builders actually make business decisions.
Unlike traditional homeowners selling a single property, builders manage hundreds of homes, multiple communities and strict financial targets. Their decisions are driven less by maximizing the price of one home and more by maintaining sales velocity and moving inventory efficiently.
That distinction can dramatically change how agents negotiate.
Paulo explained that builders often face significant pressure around month-end, quarter-end and year-end sales goals. During those periods, incentives that may not have been available earlier in the month can suddenly become possible—not because the home changed, but because the builder's business priorities changed.
Understanding those motivations gives agents a strategic advantage when advocating for their clients.
Another recurring message throughout the presentation was the importance of building genuine relationships with new home consultants.
Too often, agents view on-site sales representatives as competitors. Paulo encouraged attendees to think differently.
New home consultants possess deep knowledge of their communities, inventory, timelines and builder incentives. Agents who invest in those relationships—and who understand the goals and pressures consultants face—often gain early access to inventory updates, incentive opportunities and valuable market insights.
As Paulo put it, successful new construction agents don't simply sell homes—they build ecosystems of trusted industry relationships that ultimately benefit their clients.
Drawing on more than a decade of executive experience with one of America's largest home builders, Paulo identified a problem many agents experience every day: finding accurate, up-to-date new construction information remains fragmented and time-consuming.
While resale inventory is largely centralized through the MLS, new construction often requires agents to visit multiple builder websites, attend broker events, collect marketing materials and maintain relationships across numerous builders simply to stay informed.
That challenge inspired the creation of NEO, a platform designed specifically for new construction.
NEO brings builder communities, inventory, floor plans and project information together in one centralized system, giving agents greater visibility into available opportunities while helping preserve the agent-client relationship throughout the buying process.
Paulo also offered attendees a preview of NEO 2.0, the company's next-generation platform built with artificial intelligence at its core.
Among the upcoming features discussed were:
The goal, Paulo explained, isn't to replace the agent—it's to provide technology that strengthens the agent's role while making new construction easier to navigate for both professionals and consumers.
The insights above only scratch the surface of Paulo Neto's presentation.
If you're looking to better understand today's affordability challenges, builder strategies and the growing role of new construction in today's housing market, we encourage you to watch the full webinar below.
Watch the recording here: