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September 8, 2025 | 2 Minute Read
Buying used usually means saving money—whether it’s a car, a laptop, or clothes. But in 2025, housing is the exception.
Across the U.S., new homes are now cheaper than existing ones. The median price of a new home is about $401,800, while existing homes are averaging $435,300.
It’s a striking reversal of the long-standing trend where new builds cost more.
The shift comes down to supply and demand. Builders are sitting on the highest level of unsold inventory in 16 years, thanks to a surge of construction combined with fewer buyers who’ve been sidelined by high mortgage rates. To move their properties, two-thirds of builders are offering attractive incentives—mortgage rate buydowns, closing cost credits, upgraded appliances, and even landscaping packages.
This has opened the door for investors, many of whom are shifting away from older fixer-uppers and turning their attention to new construction rentals. The numbers make sense: maintenance on new homes often runs 1% of the property value or less, compared to as much as 5% for older properties. That translates into thousands saved each year. Most new homes also come with warranties, reducing the risk of costly surprises like a broken HVAC or faulty roof.
Beyond the financial perks, builder concessions add even more value. Investors are negotiating mortgage rate buydowns and upgrades that cut both out-of-pocket costs and the hassle of arranging improvements after closing. On the rental side, marketing a property as “brand new” can help secure tenants quickly—sometimes within weeks—thanks to the appeal of moving into a home that’s never been lived in.
Of course, prices and incentives vary by market, so it’s important for investors to look beyond the sticker price and run the full math. Factoring in maintenance savings, energy efficiency, occupancy rates, and tenant appeal often reveals that new construction delivers better returns than older homes.
For investors, the advantages of new construction are clear: lower purchase prices, generous builder incentives, and minimal upkeep. Warranties and energy efficiency keep costs down, while faster rentals drive steady cash flow. Add in the ability to negotiate upgrades and financing perks, and new builds offer a powerful mix of lower risk and higher reward—making them one of the smartest moves in today’s housing market.
