New Homes < Used? The Price Flip Explained

For the first time in modern real estate, new construction is often cheaper than existing homes—in some markets by a wide margin. In this episode, Tim Lucas and Craig Berry unpack why the pricing script flipped and how to decide if a new build is the smarter buy. You’ll learn:The Price Flip: Nationwide, new homes are selling for about $2 less per sq. ft. than existing homes; savings near $57/sq. ft. in San Diego—but premiums still exist (e.g., $216/sq. ft. in San Jose, $0.86 in Louisville).Incentives Galore: With 26% of new homes seeing price cuts and 61% of builders offering incentives (rate buydowns, closing-cost credits), deals can rival—or beat—resales.How Builders Make It Work: Smaller lots, product mix tweaks, streamlined builds, and the need for steady cash flow keep prices competitive.Buyer Perks: Lower utility bills from better efficiency, warranties up to a decade on structure, healthier materials/ventilation, and customization if you buy early.Trade-Offs: Often farther from city centers, smaller lots, and less “mature neighborhood” feel—so location and commute matter.Will It Last? Advantage may fade if demand rebounds or rates fall. Compare local price-per-sq-ft, incentives, HOA/taxes, and long-term costs before you leap.Read the full article:https://www.mortgageresearch.com/articles/new-homes-now-cost-less-than-existing-homes/