The housing market is constantly evolving, and one of the most notable trends in recent years is the narrowing price gap between new homes and existing homes. Traditionally, new homes have commanded a premium price over existing homes due to their modern amenities, energy efficiency, and the allure of customization. However, recent market dynamics have brought these prices closer together, presenting a unique opportunity for prospective homebuyers to build their own custom home!

Below, we share more information about the narrowing price gap between existing homes and new custom homes, as well as the advantages of building new! If you are interested in learning more about building, you can discover OUR PROCESS online or CONTACT US to receive more information from a JH New Home Specialist. We offer 23 FLOOR PLANS that are fully customizable to meet your needs and bring your dream home to life. At Joyner Homes, we are actively building in 8 NEIGHBORHOODS and can also build ON YOUR LOT or in any neighborhood where outside homebuilders are allowed.

The Changing Landscape

Historically, the cost of new home construction has been significantly higher than purchasing an existing home. This was primarily due to the higher costs associated with new materials, labor, and the modern conveniences that new homes offer. However, in the recent market, the median sale price of existing homes stood at $407,600, while new homes were priced at a median of $433,500​. This relatively small difference in price is a signal for buyers to consider the benefits of new construction!

Why the Gap is Narrowing

Several factors have contributed to this trend:

1. Increased Demand for Housing: The demand for homes has surged in recent years, driven by population growth and changing demographics. This demand has pushed up the prices of existing homes, narrowing the price gap with new builds​.

2. Construction Innovations: Advances in construction technology and materials have helped reduce the costs of building new homes. Prefabrication, 3D printing, sustainable and green building material, and other innovations have streamlined the construction process, making it more cost-effective.

3. Incentives and Financing Options: Builders are offering attractive incentives and financing options to attract buyers. These can include lower interest rates, closing cost assistance, and upgrades, which make new homes more financially accessible​.

Advantages of Building New

Given the narrowing price gap, there are compelling reasons to choose a new custom home build over an existing one:

1. Customization: Building a new home allows you to customize every detail to suit your preferences and lifestyle. From floor plans to finishes, you can create a home that is uniquely yours!

2. Energy Efficiency: New homes are built to the latest energy efficiency standards, which can result in significant savings on utility bills. Features like advanced insulation, energy-efficient windows, and modern HVAC systems contribute to a greener, more cost-effective home​​.

3. Lower Maintenance & Home Warranties: New homes come with brand-new systems and appliances, reducing the need for immediate repairs and maintenance. Additionally, many builders offer warranties that cover major components of the home, providing peace of mind​.

4. Modern Amenities: New homes often include the latest amenities and smart home technologies, enhancing comfort and convenience. Open floor plans, updated kitchens, and integrated home automation systems are just a few of the features that new construction can offer​.

The Time is Now

With the price gap between new and existing homes continuing to narrow, now is the perfect time to consider building a new home! The benefits of customization, energy efficiency, lower maintenance, and modern amenities make new construction an attractive option for many buyers. Additionally, current market conditions and builder incentives can make building a new home more affordable and appealing than ever, with prices more comparable to existing homes than they have been since the pre-COVID real estate market.

If you or your clients are considering a new home, now is the time to act. The combination of competitive pricing, advanced building technologies, and favorable financing options creates a perfect opportunity for prospective homebuyers looking to build. Let Joyner Homes build your dream home and take advantage of this unique market opportunity!

Sources: 1.) National Association of Realtors. Median Sale Prices of Existing Homes, April 2024. 2.) U.S. Census Bureau. New Residential Sales Report 3.) Various real estate market reports and housing data.