Which costs more, existing houses or new construction? It depends on who’s counting and how they do the count.
Generally, new houses cost more. But not lately, according to a reading of Census Bureau data by the National Association of Home Builders (NAHB).
The median price for a new single-family home in the second quarter was $410,800. That’s $18,600 lower than the median price of existing homes, which stood at $429,400. And the difference marks the largest historical gap where existing home prices exceeded those of new homes.
But wait, LendingTree says otherwise. Using a report from the NAHB and Census data from 2023 that is adjusted to 2025 values, the borrower-to-lender matching service says new homes cost 37.5% more on average than existing homes.
The average price difference is $146,581, with new homes costing a median of $537,791 and existing homes $391,210.
Apples to oranges, with each study looking at different numbers.
Here’s the NAHB’s take: Typically, new homes carry a price premium over existing homes. From 2010 to 2019, this pattern held steady, with an average difference of $66,000. But over the past five years, the gap has narrowed significantly, averaging just $24,800.
Finally, the trend reversed in 2024. In both the second and third quarters, the median price of existing homes surpassed that of new homes.
New home prices have moderated because of “tactical builder business decisions,” while existing home prices continue to increase because of lean supply and “perhaps a lack of price discovery for existing homeowners.”
The median price for a new single-family home sold in the second quarter of 2025 actually fell 0.9% from the previous year. The drop follows year-over-year declines for nine consecutive quarters.
Meanwhile, the median price for existing single-family homes increased 1.7% from one year ago. Existing home prices have continued to experience year-over-year increases for eight consecutive quarters.
“Home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes and offering incentives,” says NAHB economist Onnah Dereski. “Additionally, there has been a shift in home building toward the South, associated with less of policy effects.”
But hold on there, buckaroo. LendingTree reports that the median home value – not average and not price – of a brand-new home is $537,791, likely for 2024. That compares with $391,210 for an existing home, a $146,581 difference.
LendingTree says the average difference between new and existing home prices over the last five years was $26,700, But between 2010 and 2019, the gap widened significantly to $66,000.
Matt Schulz, the company’s chief consumer finance analyst, points out that multiple factors contribute to the higher prices of new homes. “One of the big reasons is simple demand,” he says, is that “people are frequently willing to pay more for new homes, so prices go higher.”
Other factors include high construction costs, limited supply, land prices, and local policy. “It can be super-expensive to build a new house from scratch, thanks to high costs for labor, materials, permits, land, and other aspects of the homebuilding process,” Schulz says.
Of course, there are regional differences. For example, in Connecticut and California, new homes cost more than twice that of existing houses on average, according to LendingTree.
The NAHB data drills down only to the regional level. It says the least expensive region for new homes in the first quarter was the South, where the median price of $372,100. The Midwest followed closely behind at $385,300. For existing homes, the Midwest was the most affordable region at $328,800, followed by the South at $376,300.
New homes were most expensive in the Northeast with a median price of $796,700, while the West sold at $531,100. For existing homes, the West led as the most expensive region at $646,100, followed by the Northeast at $646,100.
The new home price premium was most pronounced in the Northeast, where new homes sold for $269,500 more than existing homes. The West and South followed the national trend, with existing homes priced $4,200 more than new homes in the West and $115,000 more in the South.
