Price Gap Between New and Existing Homes Shrinking

Although new homes have traditionally carried a price premium over existing homes, the gap between the two is shrinking for the first time in the quarterly data since 1989, according to the National Association of Home Builders. 

In Q4 of 2024, the median price for a new single-family home was $419,200, only $9,100 more than the median price of an existing single-family home ($410,100). 

In fact, in Q2 and Q3 of 2024, the median existing home price exceeded the new home price. 

Overall, the average price premium of new home sales over existing home sales last year was $8,725 – a considerable decline from $33,750 in 2023. The 10-year average is $50,657. 

NAHB attributes tight inventory to the rise in existing home prices. Additionally, new home prices change due to the types and locations of homes being built, especially as home builders are adapting to affordability challenges. 

Although the price gap between new homes and existing homes is shrinking nationally, it remains relatively wide in the Northeast – the region with the most pronounced gap. In Q4 of 2024, new single-family homes sold for approximately $310,900 more than existing single-family homes. 

In comparison, new homes were more expensive in Q4 in all other regions except the West. 

• Midwest: +$63,200 for new homes 
• South: +$10,400 for new homes 
• West: +$73,500 for existing homes