Before You Buy That Fixer-Upper, Read This

Existing Homes Are Now Outpricing New Construction—Here’s What That Means for You

For the first time in years, resale homes (yes, the charming older ones that might need a little TLC) are selling for more than brand-new builds.

Right now, the median price for an existing home is $429,400. For new construction? $410,800.
That’s an $18,600 gap—and not in the direction most people expect.

So if you’ve been assuming a resale would be the “cheaper” choice, it’s time to rethink things.

Let’s talk about why this is happening, what it means for you, and when a fixer-upper still makes sense.

The Numbers Have Flipped

For years, new homes were way pricier than resales. Between 2010 and 2019, the gap averaged about $66,000. Even in the last five years, it was still around $25,000.

But in mid-2024, that flipped—existing homes actually became more expensive than new construction, and here in 2025, that trend is holding strong.

• New home prices: down 0.9% year-over-year

• Existing home prices: up 1.7% year-over-year

Why Fixer-Uppers Aren’t Always the Bargain They Seem

A “needs work” home can be tempting—but with today’s market, that bargain might be an illusion. Here’s why:

• Material & labor costs are still high. Prices haven’t returned to pre-pandemic levels. Lumber, roofing, and skilled trades all cost more than you think.

• Contractor delays are real. Getting someone out for an estimate could take weeks (or months).

• Hidden surprises are common. Old wiring, outdated plumbing, mold—you name it, I’ve seen it. And those “little” fixes can snowball fast.

• Time is money. Every delay adds stress and carrying costs.

By the time you’re done, your “cheap” house may have cost more than a move-in-ready new build.

Why New Homes Are Holding the Advantage

Builders are adjusting to the market—and it’s paying off for buyers. They’re:

• Building smaller, more efficient floor plans

• Choosing affordable land

• Offering incentives like rate buydowns, closing cost help, and design upgrades

Because they operate at scale, they can keep prices competitive, even with higher material costs. That’s why new home prices are softening while resale prices keep creeping up.

When a Fixer-Upper Still Makes Sense

There are times a fixer-upper is the right move:

• You’re buying well below market value and the math checks out

• You’ve got the budget, skills, and patience for a remodel

• You want a neighborhood with no new construction options

• You’re planning a full custom renovation and want total control

Bottom Line

In today’s market, “older” doesn’t automatically mean “cheaper.” In fact, you could pay more for a home that still needs work than you would for a brand-new one with energy efficiency, modern layouts, and a builder warranty.

If you’re buying right now, the smartest move is to compare all your options—run the numbers, check incentives, and weigh the cost against your goals and timeline.

You might be surprised where the better deal really is.