New Homes Now Cost Less Than Existing Ones In A Third Of Major Markets

New construction is challenging the assumption that a newly built home always costs more. Zillow found new homes sold for a median $205 per square foot nationally in July compared with $212 for existing homes, and new construction is less expensive per square foot in one-third of major markets. The biggest discounts are concentrated in markets with abundant new construction, including Austin at 19.3%, Raleigh and San Diego at 14.4% and Tampa at 12.4%.

The changing value equation gives sellers a strong conversation starter with homebuilders, new-home communities, real estate agents, mortgage lenders, banks and credit unions, moving companies, home improvement businesses and furniture and appliance retailers. Builders in particular may benefit from advertising that challenges consumers’ assumptions about new-home affordability while highlighting incentives, financing options and the benefits of buying new.