New Construction Homes Offer Better Value Than Resale Properties Across U.S. Markets

Purchasing a newly constructed home is now less expensive than buying an existing property in numerous U.S. markets.

According to a recent Zillow analysis, newly built homes provide superior value compared to existing properties both nationally and in over a third of major U.S. metropolitan areas. In July, new homes sold for a median of $205 per square foot, versus $212 for existing homes.

Between 2018 and 2024, newly built homes commanded higher prices per square foot than existing homes in 77 out of 84 months.

“For years, buyers assumed new construction was beyond their budget, and for most of the past decade, they were correct,” said Zillow senior economist Kara Ng in a statement to FOX Business. “That has changed. Zillow’s research indicates new homes now sell for a median of $205 per square foot nationally, compared to $212 for existing homes.”

Newly built homes sold for a median of $205 per square foot in July, compared to $212 for existing homes. (iStock / Getty Images Plus)

Ng added, “Buyers who haven’t reviewed new construction recently should take another look.”

Over the past 19 months, builders have aggressively cut prices and offered incentives to clear inventory. New homes sold at a discount to existing homes in 17 of those months, Zillow reported.

Elevated mortgage rates have also kept many homeowners in place, reducing the supply of existing homes, the report noted.

The most significant discounts are concentrated in the Sun Belt, where a surge in homebuilding has provided buyers with more options.

Austin, Texas, leads the rankings, with new homes selling for 19.3% less per square foot than existing homes.

Austin, Texas, leads the rankings, with new homes selling for 19.3% less per square foot than existing homes. (iStock)

Raleigh, North Carolina, follows with a 14.4% discount, while Tampa, Florida, completes the top three at 12.4%.

“Buyers are finding the best deals in areas where builders were most active,” Ng said.

“Builders in those markets have inventory to move and know it, so prices are coming down. They’re sweetening deals with incentives like mortgage rate buydowns that typical resale sellers cannot offer.”

Nationally, new homes accounted for 12.6% of all home sales in the 12 months through July 2026, though their share varied widely by market.

New construction represented 37.1% of home sales in San Antonio and 33.6% in Raleigh, compared to just 2% in Hartford, Connecticut.

New construction represented 33.6% of home sales in Raleigh. (iStock)

“What’s happening in high-supply markets proves what occurs when more homes are built,” Ng said. “Affordability has improved in these areas because builders had to compete for buyers. However, we’re still about 4.7 million homes short nationally, and permitting is slowing down.”

“The gains we’re seeing today could reverse if we don’t continue building. Local policy, including zoning reform and streamlined permitting, is the most direct lever we have.”

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