This verse refers to the spiritual rebirth that occurs through faith in Jesus Christ. It speaks of the new birth that takes place in the hearts of believers, transforming them from the inside out, and granting them a fresh start in life. This verse bears testimony to the transformative power of God's love and the new life that it brings to all who receive it.
Our earthly birth stems from mortal, human seed and is subject to death and decay. But the indestructible, spiritual Seed is the Word of God, which brings new life through faith created by hearing and being convinced by the Word of God. The Holy Spirit brings this understanding of God's Word from mere head knowledge to a deep-rooted faith in our hearts.
Our sin has earned us death, but God's love for the world is so great that He sent His son to pay the price for our sins. Through faith in Him, we can have a new birth and become part of the eternal creation of Christ, instead of inheriting the sin of Adam.

Dear Heavenly Father, I thank You for sending Your only begotten Son to pay the price for my sins out of Your love for me. I believe in the truth of Your Word and the power of Your Holy Spirit to renew my heart. Help me to have faith in Jesus, to be born again into the newness of life and to live as a new creation in Christ. May my thoughts, words and actions bring honor and glory to You.
In Jesus's name I pray. Amen.