New Homes Cost Less Than Older Ones in Southern Markets

The Southern United States is identified as the leading region for purchasing newly-built homes, offering competitive pricing and a wide selection, according to a recent report from Realtor.com. Eight of the top ten metropolitan areas for buying new construction are situated in the South, with Charleston, South Carolina, topping the list. Outside of the Southern states, only Boise City, Idaho, and Madison, Wisconsin, were recognized among the top metro areas for new home purchases. Realtor.com Senior Economist Joel Berner highlighted that markets like Charleston, Greenville, and Boise are effectively meeting the primary desires of new-home buyers: offering a variety of choices and pricing that makes newly constructed homes a viable option. The report's methodology for ranking these markets involved evaluating several key factors. These included the proportion of new homes within the total available listings, the price differential between new and existing homes, and the average time new homes remain on the market. Additionally, the analysis considered the climate-related risks associated with new homes in comparison to older properties. Berner emphasized that new home construction is crucial for increasing the overall housing supply available to consumers, but this opportunity is not uniformly distributed across the nation. He further noted that Southern metropolitan areas are not only increasing their pace of home building but are also fostering an environment where buyers can find newly constructed homes at prices that are competitive with, and in some instances, lower than those of existing homes. In Charleston, for example, buyers can expect to pay approximately 12% less for a new house compared to the median price of an existing home. This price difference presents a significant incentive for prospective homeowners attracted to the advantages of purchasing a brand-new property. The median list price for a new build in Charleston stands at $443,273, contrasting with the median price of $504,832 for pre-existing homes. New homes constitute nearly a quarter of all listings in Charleston, representing a substantial portion of the market for individuals specifically seeking a home that has not been previously occupied. This trend indicates a growing market for new housing developments in these booming Southern areas, driven by both supply and affordability factors.