New Homes Now Cost Less than Existing Homes in Many Markets

Dow Jones
Sep 29

1101 ET - Buying a new home is now typically a better value than an existing home nationwide, Zillow says. New homes now sell for a median of $205 per square foot, below the $212 median for existing homes, according to a Zillow study. The relative discount for new homes is usually biggest where construction surged during the pandemic boom, particularly in the Sun Belt. This reverses the trend in recent years, when new homes sold for more per square foot than existing homes in 77 of 84 months from 2018 to 2024. Where construction has boomed and inventory is plentiful, discounts run deeper as increased competition gives builders more reason to offer incentives. Where inventory remains locked up and new construction faces more hurdles, builder offerings lean toward the higher end and carry a premium, Zillow says.

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