New Homes Now Cheaper Than Existing Houses After 50-Year Trend Reversal, Hedgeye Says: ‘The Builder Has to Sell’

New homes are becoming more price-competitive with existing homes as builders offer incentives to attract buyers amid declining year-over-year sales and persistent affordability pressures.

On Tuesday, in a post on X, Hedgeye, an independent investment research and financial media company, said new homes had been cheaper than existing homes in 17 of the past 19 months, reversing a trend it said had lasted 50 years before changing in 2024. The firm said the median new single-family home price was $393,700, compared with $422,700 for existing single-family homes, a $29,000 difference. It also said new homes cost $205 per square foot, versus $212 for existing homes.

"The builder has to sell. The homeowner doesn’t," Hedgeye wrote, pointing to the larger supply of new homes and the reluctance of some existing homeowners to sell while holding pandemic-era mortgage rates.

New homes are cheaper than existing homes:

For 50 years, a new house cost more than a used one. That changed in 2024.

The median new single-family home sells for $393,700. The median existing one sells for $422,700.

That’s a $29,000 discount for buying new.

Per square foot,… pic.twitter.com/UEJ5HrlDjQ

— Hedgeye (@Hedgeye) October 27, 2026

Data Shows Different Supply Conditions

Hedgeye used data from the U.S. Census Bureau and the Department of Housing and Urban Development, along with the National Association of Realtors (NAR). The $393,700 median new-home price and 8.5 months of new-home supply were August figures. NAR’s September report put the median existing single-family home price at $422,700, with 4.8 months of existing-home supply. The $29,000 price gap therefore compares different reporting months.

The latest Census Bureau and HUD report, released Tuesday, showed September new-home sales at a seasonally adjusted annual rate of 676,000, down 5.3% from a year earlier. The median price of new homes sold that month was $400,400, down 3.9% year over year, while supply stood at 8.4 months.

Builders Offer Incentives as Buyers Hold Back

A separate report by Realtor.com on Tuesday said builders were offering lower prices and incentives to attract hesitant buyers amid elevated mortgage rates. Realtor.com economist Joel Berner said buyers remained reluctant, pushing builders to offer concessions.

Housing affordability is also weighing on prospective buyers. Estimates from John Burns Research & Consulting showed monthly mortgage payments on a median-priced resale home had risen 97% since January 2020, compared with 33% income growth. The figures highlight the pressure that rising homeownership costs have placed on buyers.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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