In the Nashville area, new houses are cheaper per square foot than old ones

Zoom out: This is part of a national trend. Nationwide, new homes are $3.50 cheaper per square foot.

• That's the widest gap in at least six years, Zillow reported.

Zoom in: The Nashville area is one of 21 major U.S. metros driving that dynamic. Other cities where new homes are less expensive than existing ones include San Diego, Salt Lake City and Los Angeles.

Yes, but: The trend in the metropolitan area, which includes Nashville and its surrounding suburbs, varies when you zoom in on specific counties.

• For instance, when Davidson County is considered on its own, the price per square foot so far this year is $267 for existing homes and $288 for new homes, according to figures provided by Greater Nashville Realtors.

The big picture: With elevated interest rates hammering housing affordability, many builders are shrinking homes to cut costs or offering incentives, including lower mortgage rates.

Between the lines: Several factors are influencing the pricing shift.

• Greater Nashville Realtors president Kevin Wilson tells Axios some builders are also using more simple, streamlined designs that are less expensive in addition to using more basic finishes to keep costs down.

The intrigue: "Not only are cash-strapped buyers continually seeking out lower-cost options, but developers are changing what type and size of home they're producing to try and meet that need," Zillow senior economist Orphe Divounguy tells Axios.

Reality check: Trends in the housing market could change quickly. If the Federal Reserve follows through on expected rate cuts, experts expect a surge in demand from buyers who have been waiting on the sidelines.

• The average 30-year fixed mortgage rate has fallen lately, reaching 6.47% last week, according to Freddie Mac.