Zillow research in 2024 found that a majority of prospective home buyers who intend to buy a home in the next year preferred new construction, with 52% saying they were more or only interested in new construction. Meanwhile, the research found that 63% of buyers who actually bought a home in the previous 12 months, said they prefer existing homes.
To help you decide between new construction vs existing homes, here are some key factors to consider.
Looking for a Fresh Start? The Benefits of New Construction may Entice You!
A Fresh Start in a Brand New House
When you move into a brand-new house, you get to create your own history and make it uniquely yours from the very beginning. There are no previous owners or lingering memories, which can be especially comforting if you’re looking to start a new chapter in your life. You also don’t need to worry about sinking money into fixing previous maintenance blunders or undoing home renovations.
Modern and customizable
In general, newly built homes have more modern layouts. Depending on what stage of construction you’re buying, you can either have total control over the layout or choose from options offered by the builder. For example, if you’re buying in the early phases of a new home community, you may have the opportunity to work with the builder to create a location or layout that works for your life. You may be able to customize everything from what direction your home faces to get the best views, to where it sits on the lot for optimal privacy. Generally, rooms in new construction homes — especially bedrooms and bathrooms — tend to be larger and brighter, with lots of natural light.
Personalized finishes
You may be able to choose specific finishes or upgrade finishes from builder-grade materials if you connect with the builder before construction is completed. It may cost you a bit more, but adding your own personal touches may be worth it to you.
Energy efficiency
New smart appliances and home systems are more energy efficient. And more efficient insulation and windows create buttoned up homes that are less expensive to heat and cool than older models. All of that translates into lower utility bills.
Smart technology
Smart technology options that allow you to automate internet, cable, speakers and even an alarm system are often built into new homes, saving you the trouble and cost of updating an older home to include these features.
Sales incentives
Builders typically offer incentives and promotions that can make home buying less expensive. Incentives are more common in buyers’ markets, and include paying for closing costs and temporary or permanent mortgage rate buydowns, and free or discounted upgrades. Some of those incentives, however, can be tied to in-house financing. In 2024 and 2025, builders also have negotiated on price, waived lot premiums and offered home warranties.
Lower maintenance/replacement costs
A newly built home typically requires less maintenance or replacement costs since everything from appliances to the HVAC system and roof are brand new. This means you can better predict monthly homeownership costs, since you’ll likely spend less to maintain your home outside of the normal maintenance required of any home.
Builder warranties
Many newly built homes have builder warranties that can protect components of your new home for years before you need to undertake any major repairs.
Amenities often Abound!
Buying new construction often means buying a lifestyle. Master or planned communities often include amenities like parks, pools and community spaces that are close to schools and transit.
Caters to buyers who value flexibility
The time needed to complete new construction can provide some breathing room if you don’t need to move quickly. According to the National Association of Home Builders, an industry group, a new home can take anywhere from 6 to 12 months to construct. Design complexity, the availability of materials and labor, and even the weather can affect the timeline. You can put an offer on a house that hasn’t yet been built or is in the early stages of construction, and then move in when it’s ready. The timeline doesn’t work for every buyer, so you may have less competition if your moving timetable is flexible.