Are New Construction Homes Cheaper?
- Author:
- Zachary Sodolak
- Posted:
- September, 9, 2024
- Categories:
- General
Are New Construction Homes Cheaper? Here's What You Should Know!
If you're in the market for a new home, you may be wondering: Are new construction homes cheaper than pre-existing ones? The short answer is yes, they can be! But, as with any real estate purchase, there are several factors at play that affect affordability. Let’s dive into the numbers and explore why new construction homes could be a cost-effective option for you.
The Numbers: New Construction Offers Value
According to a recent article from Redfin, the median home price in Dallas, TX was $445,000 as of July 2024, reflecting a steady year-over-year increase. However, when we look at the average price for new construction homes in the Dallas-Fort Worth (DFW) area, it tells a slightly different story. In July 2024, the average price of new construction in DFW came in at $410,498.88, contrasted with $406,316 in the same areas. While the new home sales price comes in slightly higher than that of existing homes, there are other advantages to consider that we'll dive into below.
This data shows that new construction homes in the Dallas area are, in fact, cheaper on average compared to the overall housing market. With the numbers in your favor, it’s clear that buying a new construction home can be a smart move if you're seeking affordability combined with modern design and efficiency.
Why Are New Construction Homes Cheaper?
Two key reasons explain why new construction homes can be cheaper in the long run:
1. Move-In Ready, No Major Repairs Needed
One of the biggest advantages of purchasing a new construction home is that everything is brand-new and ready to go. Unlike older homes that may require costly repairs—whether it’s a new roof, updated plumbing, or electrical work—new construction eliminates these unexpected expenses. Plus, new homes come with warranties, often covering major systems and appliances for the first few years. This means you won’t have to worry about paying out of pocket for repairs anytime soon, making your investment more predictable and manageable.
2. Builder Incentives and Promotions
Another major factor making new construction homes cheaper is the variety of incentives and promotions that builders frequently offer. Builders are motivated to sell their homes quickly and often run limited-time offers, such as lower interest rates, discounted upgrades, or help with closing costs. Additionally, builders may give financial incentives if you choose their preferred lender or title company. These promotions can significantly reduce the upfront cost and make buying a new construction home even more affordable. Kindred Homes, for instance, currently offers below-market interest rates for buyers opting to use its preferred lender on quick move-in home purchases. Additionally, Kindred Homes offers $10K flex money that can be applied to closing costs, rate buydowns, and much more. Speak with a New Home Consultant (NHC) for more information on what can apply for each specific community. If you’ve been asking yourself, is it cheaper to buy a new construction home?, the answer is a resounding yes! While prices can vary depending on location and individual builder offerings, the Dallas-Fort Worth market shows that new construction homes offer competitive pricing, with fewer repair costs and enticing incentives. Whether you're looking for long-term savings or the peace of mind that comes with a move-in ready home, exploring new construction options could be the right path for you.