Think a brand-new home comes with a hefty price tag? Think again.
Right now, the housing market is showing an unexpected trend. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than that of existing homes (previously lived-in properties).
Yes, you read that correctly. A brand-new, never-occupied home could cost less than a 20-year-old house in a nearby neighborhood. If you’ve dismissed new builds assuming they’re too expensive, here’s why you might want to reconsider. You could be overlooking some of the best opportunities in today’s market.
Why Are New Homes More Affordable Right Now?
Builders Are Focusing on Smaller Homes
With affordability challenges in mind, builders are constructing smaller homes to meet buyer demand. According to the Census, the average size of new single-family homes has decreased significantly in recent years (see graph below). Smaller homes require fewer materials, lowering construction costs and allowing builders to offer more budget-friendly prices.
Price Reductions and Incentives
In May, the National Association of Home Builders (NAHB) reported that 34% of builders cut prices by an average of 5% to move inventory. Additionally, 61% of builders offered incentives, such as covering closing costs or reducing mortgage rates, to make homes more affordable and appealing in today’s market.
Next Steps: Talk to Your Agent
If you’re in the market for a home, consult your real estate agent to explore what builders are offering in your area. They can identify new home communities, highlight builders with discounts or incentives, and uncover options you might miss on your own.
Buying a new home involves a different process than purchasing an existing one, so having an experienced agent is key. They’ll guide you through the steps, negotiate on your behalf, and ensure your interests are prioritized.
Bottom Line
A brand-new home with modern features could be more affordable than some older properties. Let’s discuss your needs and explore whether a newly built home is the right choice for you.
What’s holding you back from considering a new build?