New homes save buyers over $25K in the first decade compared to older properties
Jim Tobin, president and CEO of the National Association of Home Builders, told Fox News Digital that he expects the current levels of money, prices and other economic pressures affecting buyers and home builders to ease.
A newly built home can be more expensive up front, but buyers can move out sooner since new buildings require less maintenance and use less energy, according to a new report by Realtor.com.
The report suggests that buyers should look beyond listing prices and consider the long-term costs of home ownership when comparing new and existing homes.
The results come as housing affordability continues to dominate economic concerns for many Americans ahead of the midterm elections.
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Newer homes often feature more efficient systems, better plumbing and major new components that can lower the cost of ownership. (David Paul Morris/Bloomberg/Getty Images/Getty Images)
Realtor.com found buyers of remodeled homes save an average of $25,335 during the first 10 years of ownership compared to buyers of 20-year-old homes. The savings come mainly from lower utility bills and reduced costs for major repairs and replacements, including HVAC systems, roofs and water heaters.
The study compared homes built in 2025 with homes built in 2005, using an average home size of 1,750 square feet. Researchers found new homes that benefit from updated building codes, improved insulation and more energy-efficient systems.
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New home buyers can save an average of $25,335 over 10 years by taking advantage of lower operating and maintenance costs, according to a Realtor.com report. (Photos by Mario Tama/Getty/Getty Images)
Savings varied greatly by region, with New England states seeing the largest long-term savings. Massachusetts led the nation by nearly $39,000 over 10 years, which researchers attributed to cold weather and strong energy codes.
Southern states, including Arkansas, South Carolina, Kentucky, Florida and Texas, saw the least savings despite lower upfront construction costs. Realtor.com said mild winters reduce potential energy savings.
The report identified 16 metro areas where long-term savings are reducing the upfront cost of new construction, including San Diego, Salt Lake City, Seaford, Delaware, Salem, Oregon, and Madison, Wisconsin.
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The report found that the financial benefits of new construction varied greatly by state, with the Northeast posting the strongest 10-year savings. (Joshua Lott/Bloomberg via Getty Images/Getty Images)
The researchers also noted that builder incentives, including price reductions, cash credits and buy-to-let mortgages, could further improve affordability.
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Realtor.com estimates that new home buyers currently pay mortgage rates about 1 percent lower than existing home buyers, potentially saving more than $30,000 over 10 years.
The findings emphasize that operating costs and financial incentives are becoming a large part of the homebuyer’s affordability equation.
