As the housing market evolves, new construction homes are becoming more appealing, offering significant savings compared to existing properties. According to recent data, new homes are now priced $3.50 less per square foot than older homes—the biggest discount in over six years.
While new homes have traditionally come with a premium, this shift is a result of builders adapting to affordability challenges. Buyers are benefitting from cost-saving incentives, smaller but more efficient homes, and avoiding costly repairs. Here’s why new construction homes offer the best value today.
Before the pandemic, new construction homes cost significantly more than existing ones, with premiums ranging from $15 to $22 more per square foot. However, in May 2024, this trend reversed, with new homes selling for an average of $209.70 per square foot, compared to $213.20 for existing homes. This price shift is notable, considering that new homes typically come with the advantages of modern amenities, lower maintenance costs, and energy efficiency.
Moreover, nearly 29% of new homes received price cuts in June, and over half of builders are offering additional incentives like mortgage rate buydowns or covering closing costs. These perks can save buyers thousands, making new builds even more attractive.
One key factor behind the price drop is the evolution in the design of new homes. Modern layouts, open-concept living areas, and energy-efficient features make today’s new builds more functional and cost-effective.
The national housing shortage, which reached 4.5 million homes in 2022, has driven demand for new builds. With homeowners reluctant to sell due to locked-in low mortgage rates, new construction has become an essential source of housing inventory. As the demand for affordable housing continues, new builds are meeting this need by offering smaller, more efficient homes that are easier to maintain and within reach for more buyers.
According to Zillow, 43% of new construction buyers prefer move-in-ready homes that don’t require any updates or repairs. Additionally, 89% of buyers prioritize staying within budget, and energy efficiency ranks as the third most important feature when selecting a new home.
This data reflects a growing preference for homes that offer a hassle-free experience, making new builds an attractive option for today’s buyers.
At Integrity Homes, we understand the value of building new. Our customizable floor plans are designed to meet your lifestyle and budget, offering the flexibility to create a space that’s uniquely yours. Whether you’re looking for a cozy family home or a luxurious retreat, our expert team is here to bring your vision to life.
Explore our collection of floor plans and discover the benefits of building new today. Contact us for more information on how we can help you find your perfect home.
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Grand Junction , Colorado 81501
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