New study shows it's becoming increasingly more expensive to purchase a new property
Homebuyers across the US face a growing income gap when choosing between new and existing homes, with new construction now costing 37.5% more on average, according to recent findings from LendingTree.
National median figures show new homes priced at $537,791, while existing homes average $391,210 — a difference of $146,581. To afford the higher cost, households would need an annual income of $166,273 for a new home, compared to $120,159 for an existing property.
The price spread varies widely by state. In Connecticut and Pennsylvania, new homes cost more than double the price of existing homes. Connecticut shows the largest gap, with new homes averaging $996,870 versus $441,210 for existing homes — a 125.9% increase. Pennsylvania follows at 121.4%, where new homes reach $659,468 against $297,831 for existing ones.
Matt Schulz, chief consumer finance analyst at LendingTree, said demand plays a role, with many buyers willing to pay more for newly built properties. Other factors include higher costs for materials, labor, land, and permitting.
Some states present a different scenario. In California, existing homes are priced 24.7% higher than new homes, with a $193,682 difference. Existing properties there carry a median price of $784,798, while new builds cost $591,116. Vermont and Delaware show smaller differences, where existing homes are 8.8% and 8.0% more expensive, respectively.
Home affordability varies just as sharply. In four states, buying new construction would require at least $100,000 more in annual income compared to existing homes. Connecticut tops this list with a $188,080 difference. Massachusetts buyers would need $122,357 more, while those in Pennsylvania and the District of Columbia require $115,512 and $104,938 more, respectively.
By contrast, six states, including California, Vermont, and Delaware, show lower income thresholds for new homes. In California, the income required to buy a new home is $173,786 — $56,942 less than what’s needed for an existing property.
The data points to an uneven housing landscape where new construction can either strain or ease affordability depending on location. Regional policies, supply constraints, and buyer demand continue to influence pricing and income requirements, shaping purchasing decisions across state lines.
