A new construction home is a house that's just been built or is currently being built. You can buy one that's already finished or get involved early in the building process.
An existing home (also called a pre-owned or resale home) has been lived in before. Someone else has called it home, and now they're selling it.
According to Zillow's 2024 research, more than half (52%) of people planning to buy a home preferred new construction. However, among people who actually bought a home in the past year, 63% chose existing homes.
Benefits of Buying a New Construction Home
A Clean Slate
Moving into a brand-new home means you're the first person to live there. There's no history to deal with, and you won't have to fix problems left behind by previous owners.
Modern Design
New homes typically have updated layouts with larger, brighter rooms and plenty of natural light. Depending on when you buy, you might be able to:
- Choose your floor plan
- Pick where your home sits on the lot
- Select the direction your home faces for better views or privacy
Personalized Touches
If you buy early enough in the building process, you can often choose your own finishes—like countertops, flooring, and fixtures—rather than settling for basic materials.
Lower Energy Bills
New homes come with:
- Modern, energy-efficient appliances
- Better insulation
- More efficient windows
All of this means you'll likely pay less to heat and cool your home.
Built-In Smart Technology
Many new homes come pre-wired for internet, speakers, security systems, and other smart home features. This saves you the trouble and expense of adding them later.
Builder Deals and Discounts
Builders often offer special incentives to buyers, such as:
- Help paying closing costs
- Lower mortgage rates (called "rate buydowns")
- Free or discounted upgrades
- Waived lot fees
- Home warranties
Less Maintenance Worry
Since everything is new—from the roof to the appliances—you won't need to worry about major repairs or replacements for years. Many builders also provide warranties that cover certain parts of your home.
Community Amenities
New home communities often include extras like parks, pools, walking trails, and community gathering spaces. They're also frequently built near schools and public transportation.
Flexibility with Timing
Building a new home takes time—typically 6 to 12 months. If you're not in a rush to move, this can work in your favor. You may also face less competition from other buyers.
Drawbacks of Buying New Construction
Higher Price Tag
New homes generally cost more. In February 2025:
- The typical existing home cost $398,400
- The typical new home cost $439,000
However, on a per-square-foot basis, new homes can sometimes be cheaper.
Hard to Picture Before It's Built
If the home isn't finished yet, it can be tough to imagine living there. Many builders help by offering 3D virtual tours, detailed floor plans, and model home tours.
Potentially Longer Commute
New homes are often built in areas farther from cities, where land is cheaper. This could mean longer drives to work, stores, and entertainment. (In some urban areas, you can find new townhomes or apartments closer to city centers.)
No Mature Landscaping
Brand-new neighborhoods often look bare because trees and plants haven't had time to grow yet.
Possible Delays
If your home is still being built, construction delays can push back your move-in date. Weather, material shortages, and labor issues can all cause setbacks.
Benefits of Buying an Existing Home
Move In Right Away
Once the sale closes, you can move in immediately—no waiting for construction to finish.
Established Neighborhoods
Existing homes are often in mature neighborhoods with grown trees, developed parks, and an established community feel.
Lower Prices
Existing homes are typically less expensive than new construction, making them a more budget-friendly option for many buyers.
More Location Options
Since most new homes are built outside cities, buying an existing home gives you many more choices about where to live—including urban areas.
Fewer Decisions to Make
With an existing home, you don't have to choose floor plans, finishes, or materials before moving in. You can update and personalize the home at your own pace.
Unique Character and History
Older homes often have architectural details—like crown molding, built-in shelving, or original hardwood floors—that would be expensive to recreate today. They may also have interesting stories behind them.
Drawbacks of Buying an Existing Home
Outdated Layouts
According to the U.S. Census Bureau, nearly half of U.S. homes were built before 1980. Unless they've been remodeled, older homes often have smaller rooms, closed-off kitchens, and layouts that don't match how people live today.
More Repairs and Maintenance
Older homes may need updates or repairs—things like a new roof, updated plumbing, or modern electrical systems. This can add unexpected costs.
Less Energy Efficient
Older homes typically have less efficient insulation, windows, and appliances, which can lead to higher utility bills.
-
Need help with your down payment? Find resources and assistance here!
