Are New Homes More Affordable Than Used Homes?

You may have seen the headlines: for the first time ever, new homes are, on average, cheaper than resale homes in the U.S. This is big news—historically, new homes commanded a premium of up to 20% compared to existing properties.

There’s a lot of nuance behind these headlines, and each local market is different. However, the reality is that many buyers may have assumed a new home was out of reach—when in fact, it could actually be the more affordable option. That’s because the upfront price is only part of the story. No matter the sales price, new homes come with built-in savings that resales simply can’t match.

Here’s why buying new makes sense and saves money:

1. Lower Insurance Premiums
New homes are built to modern codes using durable, innovative materials, making them easier and cheaper to insure. Older homes, by contrast, can be difficult—or even impossible—to insure if they have aging roofs, outdated wiring, or plumbing that doesn’t meet current standards. Choosing new means less risk and lower ongoing insurance costs.

2. Reduced Maintenance
Old home = old components, designs, and finishes. It’s rare that anyone looks at a resale home and doesn’t imagine all the changes they’d make—ranging from minor updates like paint or cabinet hardware to major upgrades like knocking down walls or replacing an HVAC system.

Skip the headaches of repairing and modernizing an older home. New homes are designed for a low-maintenance lifestyle, with modern mechanical systems, cutting-edge appliances, functional layouts, and finishes built to last. Many components come with manufacturers' warranties, giving you added protection and peace of mind.

Simply put: a new home lets you keep your cash in the bank instead of spending it on immediate repairs or costly upgrades.

3. Energy Efficiency
Every new home is built to current efficiency standards, and many exceed the minimum requirements. Greenwood Homes are crafted with extra care, using techniques and materials that maximize energy efficiency—high-performance HVAC systems, insulation, plumbing, and windows. That translates to lower utility bills (up to 25% less!) and a smaller environmental footprint, saving you money month after month for the life of your home.

4. Builder Incentives
Greenwood offers perks like mortgage rate buydowns or closing cost assistance, giving buyers extra value that older homes can’t provide. Plus, Greenwood pays commissions to buyers’ agents—something often up for negotiation in a resale purchase. These incentives make it easier to move into your dream home without stretching your budget.

Buying a home isn’t just about the price—it’s about total cost of ownership, long-term savings, and quality of life. With Greenwood Homes, you get all of this plus the reassurance of a home built to last.

Discover how a Greenwood home can save you money and simplify your life—start exploring your options today.