New Construction Homes in Panama City

Where the new homes are

Much of the city inside its limits was built out decades ago, so new homes appear in two places: infill lots and rebuilt sites within the city, many cleared after Hurricane Michael, and subdivisions in unincorporated Bay County that carry Panama City mailing addresses, especially to the east and north. A Panama City address does not always mean city limits, so check which government handles permits, utilities and taxes for the lot you like.

D.R. Horton has been one of the most active national builders in the area, with communities such as Titus Park and Palmetto Bluff marketed under Panama City addresses and Park Place in nearby Callaway. Regional and local builders also build in subdivisions and on scattered lots. Availability changes as phases sell, so check current inventory before you plan around a specific community.

The gap between new and resale

Zillow's typical values for Panama City across all ages of homes: $270,618 for a three-bedroom, $356,279 for a four-bedroom and $420,383 for five or more. Values rose 1.2% for single-family homes in the past year and 23.2% for all homes over five years.

A resale house from the 1970s may list well below a comparable new build. Before calling it the cheaper option, add up:

• Insurance. An older roof, older wiring or no wind protection can raise the premium sharply or limit which insurers will write the policy.
• Near-term repairs. Roof, AC, plumbing and windows on an older home can add up within a few years.
• Flood exposure. Older homes near the bay often sit lower than new homes built to current elevation rules.
• Monthly extras. New subdivisions are more likely to carry HOA dues and sometimes a CDD assessment.

Compare the full monthly payment, insurance and expected repairs for the first five years. That is usually where the real difference shows.

Incentives tied to the builder's lender

Builders often offer closing cost credits, a reduced rate or a temporary buydown when you use their affiliated mortgage company. With Florida's buyer-side closing costs, including doc stamps on the note ($0.35 per $100) and intangible tax (0.2% of the loan), a credit can cover a good part of your cash to close.

You can use any lender. Get a competing loan estimate and compare rate, points, fees and the length of any buydown. A two-year buydown helps early cash flow but ends; a permanent rate cut keeps paying. Ask for the incentive in writing in the purchase contract, with its dollar value and conditions.

Base price, lot and options

The starting price covers the base floor plan on a standard lot. Lot premiums for size, location or a pond view, structural changes and design selections can add a lot. Builders also price elevation and roof choices, and a hip roof is worth considering for wind mitigation credits. Set your all-in number before the design appointment and ask which options affect the appraisal.

New homes and Gulf Coast storms

Homes built under the current Florida Building Code are designed for the region's wind loads, with rated roof coverings, stronger roof-to-wall connections and impact-rated or protected openings. That typically means a lower premium and no 4-point inspection. Ask the builder for the wind mitigation report, window and door product approvals and the elevation certificate before closing so you can shop insurance with real documents.

Look at the lot's flood zone and the subdivision's drainage. A new home in an A or V zone must be built to the required elevation, but streets and yards can still flood in heavy rain if drainage is undersized. Visit after a big storm if you can, and ask neighbors in earlier phases how their streets handled the last one.

CDDs, HOAs and property taxes

Some new Bay County communities sit inside a Community Development District. Its assessment appears on your property tax bill and repays bonds that paid for roads, water and drainage, plus yearly maintenance. Ask for the current assessment and how many years of bonds remain. HOA dues are separate.

The first year's tax bill may reflect only the land. Once the home is assessed, the bill rises, so budget on the full price. A permanent Florida resident can claim homestead, up to $51,411 off assessed value in 2026, plus the 3% cap on later increases.

Deposit, warranty, inspections and your agent

Ask whether your deposit is held in escrow or available to the builder for construction, and what the contract says about delays. Most builder warranties follow a 1-2-10 pattern: one year for workmanship, two for mechanical systems, ten for structure. Read the exclusions, and learn how to file a claim before you need to.

Hire an independent inspector before drywall goes up and again before closing, then schedule an 11-month inspection. The builder's site supervisor and the county inspector are not working for you. Neither is the sales rep in the model home. Bring your own agent from the first visit, since builders usually pay the buyer's agent and may refuse representation if you register alone. Send me the communities you are considering and I will put them next to the best resale options in the same price range.