The big question for buyers: New construction or resale?
There’s no universal answer, but new trends, and data from the National Association of Realtors (NAR), show more buyers are turning to new construction in the current market.
“New homes and resale homes come with different pros and cons,” says NewHomeSource chief economist Ali Wolf. “A buyer may purchase a new home because they love that the home is up to date with design but may need to live in a construction site until the community is finished. A resale home may have a more ideal neighborhood but shows its age when the buyer looks at the finer details.”
What the Data Says
NAR’s Home Buyers and Sellers Generational Trends Report sheds light on why more homebuyers are choosing new-builds. Comparing results from 2024 to 2023 highlights a shift in what matters most for buyers of new-construction homes:
Less work, less worry: Avoiding renovations or problems is the top reason buyers chose new homes in 2024. Resale homes often need updates (roof replacement, updated appliances, general maintenance). 45% of new-home buyers said avoiding the stress of renovations and repairs was the #1 reason they chose new.
Personalization is key: One in four buyers in 2024 said they want the ability to customize their home’s design. From floor plans to finishings, new construction offers a level of choice that the resale market cannot match.
Community counts: The feeling of home extends beyond the house. New-home communities afford homeowners access to amenities such as pools, parks, walking trails, and clubhouses. In 2024, buyers said community amenities played a key role in the decision to buy new, up significantly from 16% last year.
Modern features win: Compared to 2023, more than twice as many buyers in 2024 said energy efficiency and smart home technology were reasons they chose new construction. Such features can translate to greater cost savings as well as added convenience for homeowners.
Shifting Inventory: In 2023, limited resale options pushed many buyers to new homes. In 2024, only 13% of buyers cited the lack of resale inventory as the reason they bought new.
What This Means For You
“Ultimately, you need to decide what matters most to you in your home purchase,” says Wolf. “Compromising on some things is normal. Compromising on everything isn’t.”
When deciding between new and resale homes, buyers should ask themselves:
Do I want a move-in ready home or am I up for renovations, replacements, and repairs?
Would I rather choose my layout and style or buy what I see?
Do I care about smart home tech and energy savings now - or later?
Do I want community perks or a lower HOA?
Bottom line: Your answers will shape whether new or resale is the better fit. The good news? You’ve got options.
