When comparing new homes vs. existing homes, buyers often assume new construction will cost more. In some markets, that assumption deserves a second look.
Zillow’s September analysis found that new homes sold for a median of $205 per square foot nationally, compared with $212 for existing homes. New construction offered a discount in one-third of major markets, with some of the deepest discounts in places where building has been strongest.
For builders, that creates an opportunity—and a responsibility to make the comparison clear.
Price per square foot is one measure. Buyers still need to understand the total purchase price, monthly payment, and what comes with the home. Depending on the property, warranties, energy-efficient features, and fewer immediate repairs can strengthen the value proposition.
Start with the resale homes your buyers are actually considering. How do your homes compare on price, layout, operating costs, and available financing incentives? Give buyers specific answers they can use.
The discounts also reflect pressure: builders with inventory need to move homes. That makes disciplined pricing and realistic sales assumptions essential.
At Sound Capital, we believe confidence starts with understanding your market. Build for the buyers you can identify—and help them see the value you deliver.
Read the original: In One-Third of Major Markets, New Homes Cost Less Per Square Foot Than Existing Homes
