Newly Built Homes May Be Less Expensive Than You Think

Newly Built Homes May Be Less Expensive Than You Think

Do you think a brand-new home means a bigger price tag? Think again.

Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in):

You read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed they’d be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s housing market.

Why Are Newly Built Homes Less Expensive Right Now?

1. Builders Are Building Smaller Homes

Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below):

And as size goes down, the price often does too. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them.

2. Builders Are Offering Price Cuts and Incentives

In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5%. That’s because they want to be sure they’re selling the inventory they have before they build more.

On top of that, 61% of builders also offered sales incentives – like helping with closing costs or buying down your mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market.

Your Next Step? Ask Your Agent What's Available Near You

If you're trying to buy a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own.

Plus, buying a newly built home often means there are different steps in the process than if you purchase a home that’s been lived in before. That’s why it’s so important to have your own agent who can explain the fine print. You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first.

Discover why newly built homes may be more affordable than you think. Explore cost-saving benefits, modern designs, and flexible financing options for your dream home today.

newly built homes, affordable new homes, cost-effective housing, modern homes, new construction affordability, buying a new home, housing market trends, dream homes, home financing options, affordable housing solutions.

Learn more:

Newly built homes may be less expensive than many potential buyers assume. Learn about current housing market trends to discover how new construction compares in affordability. Explore the benefits of buying a newly built home compared to older properties. With access to cost-effective building materials, developers offer competitive pricing that saves buyers money. Additionally, modern designs in new homes reduce energy consumption, thanks to energy-efficient construction techniques. Flexible financing options also play a huge role, and first-time buyers can often find assistance in purchasing their first property. Consider the benefits of building from scratch to meet your needs, avoiding costly renovations and older utility systems. For help starting the process, explore where to buy affordable new homes. Newly built homes might also offer peace of mind through warranty protection or customizable layouts. Explore the possibilities and find your perfect balance of affordability and innovation today!

Bottom Line

You could get a home that’s brand new, with modern features, at a price that’s even lower than some older homes. Let’s talk about what you’re looking for and see if a newly built home is the right fit for you.

If buying a home is on your to-do list, what would stop you from exploring newly built options?