Older Homes Now Selling for More Than Brand-New Builds
For the first time in a long while, pre-owned houses — the ones that have been lived in before and might need updates — are often selling for higher prices than brand-new ones.
Recent data shows the median price for an existing home is $429,400. The median for a newly built home? $410,800.
That’s a gap of $18,600 in favor of resale homes.
If you’ve been assuming that older homes are automatically the “budget” choice, it may be time to take a closer look at the numbers.
How the Market Flipped
For years, new construction came at a hefty premium. Between 2010 and 2019, the difference in median prices averaged around $66,000. Over the past five years, that gap shrank to about $25,000.
Then, in mid-2024, the balance shifted. For the first time, resale homes edged past new builds in price — and that trend has continued into 2025.
Price changes over the past year show the same story:
New home prices: Down 0.9% year-over-year
Existing home prices: Up 1.7% year-over-year
The Hidden Costs of “Cheap” Fixer-Uppers
Buying an older home with plans to renovate might seem like a good way to save money, but today’s renovation market tells a different story:
Materials and labor remain pricey. Even though inflation has cooled, building supplies and skilled workers still cost more than before the pandemic.
Contractor availability is limited. Scheduling delays can push projects back weeks or months.
Unexpected repairs are common. Older houses can hide costly surprises like faulty wiring or water damage.
Renovations take time. Every delay adds stress and increases carrying costs.
By the time the work is done, you might spend more than if you’d bought a ready-to-move-in home.
Why New Builds Are Holding Their Ground
Homebuilders are adapting quickly. Many are:
Constructing smaller, more space-efficient houses
Choosing affordable areas for development
Offering incentives like lower interest rates, help with closing costs, and free design upgrades
Because they work at scale, they can manage costs more effectively, which helps keep prices from rising too quickly — even as resale home prices climb.
When a Fixer-Upper Still Makes Sense
There are still situations where buying an older home to renovate is worth it:
You’re buying well below market value and have carefully run the numbers
You have the time, money, and skills (or a reliable crew) to handle the renovations
You want to live in a neighborhood where no new homes are being built
You plan to fully customize the home to your own design preferences
The Takeaway for Buyers
Don’t assume that “older” means “cheaper” anymore. In today’s market, you could end up paying more for a home that needs repairs than for a move-in-ready new build with modern features and a builder’s warranty.
Before making a decision, compare your options side by side — including price, incentives, and the total cost over time. You may find that the better deal isn’t where you first expected it to be.
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