A newly built home may cost more upfront, but buyers could come out ahead over time as newer properties require less maintenance and use less energy, according to a new Realtor.com report.
The report suggests buyers should look beyond listing prices and consider the long-term cost of homeownership when comparing new and existing homes.
The findings arrive as housing affordability continues to dominate economic concerns for many Americans ahead of the midterm elections.
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Realtor.com found buyers of new-construction homes save an average of $25,335 during the first 10 years of ownership compared with buyers of 20-year-old homes. The savings stem largely from lower utility bills and reduced spending on major repairs and replacements, including HVAC systems, roofs and water heaters.
The study compared homes built in 2025 with homes built in 2005, using a standard home size of 1,750 square feet. Researchers found newer homes benefit from updated building codes, improved insulation and more energy-efficient systems.
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Savings varied widely by region, with New England states seeing the biggest long-term savings. Massachusetts led the nation at nearly $39,000 over 10 years, which researchers attributed to colder climates and stricter energy codes.
Southern states, including Arkansas, South Carolina, Kentucky, Florida and Texas, saw smaller savings despite lower upfront new-construction costs. Realtor.com said milder winters reduce potential energy savings.
The report identified 16 metro areas where long-term savings offset the upfront premium for new construction, including San Diego, Salt Lake City, Seaford, Delaware, Salem, Oregon, and Madison, Wisconsin.
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Researchers also noted that builder incentives, including price cuts, cash credits and mortgage-rate buydowns, could further improve affordability.
Realtor.com estimates new-home buyers currently pay mortgage rates roughly one percentage point lower than buyers of existing homes, potentially saving more than $30,000 over 10 years.
The findings underscore how operating costs and financing incentives are becoming a larger part of the affordability equation for homebuyers.
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