Price Gap Between New and Existing Homes Remains Narrow in 2025

As home buyers navigate high interest rates and rising living costs, many are surprised to discover a narrow price gap between new and existing homes. In fact, during the first quarter of 2025, the median sales price of a new home was just $14,600 more than that of an existing one.

According to data from the U.S. Census Bureau and the National Association of Realtors, the median price for a new single-family home sold during the first three months of 2025 was $416,900, compared to $402,300 for an existing home.

This modest $14,600 gap is notably small by historical standards. For context, in the fourth quarter of 2022, the difference peaked at $64,200, with new homes commanding a larger premium.

Typically, new homes sell for more than existing ones. However, during the second and third quarters of 2024, existing homes exceeded new homes in price. While that anomaly has since reverted, the continued narrow gap underscores a housing market still contending with low inventory — especially for entry-level homes.

New home prices have declined year over year for eight consecutive quarters. In Q1 2025, the median new home price dropped 2.32% compared to the same period last year. Meanwhile, prices for existing homes have risen for seven straight quarters, increasing 3.38% year over year.

Regionally, the Midwest remains the most affordable in Q1 2025. New homes there sold for a median price of $367,500, while existing homes came in at $297,800. In the South, the gap was narrower, with new homes averaging $376,000 and existing homes at $361,800.

For a deeper dive into the market forces shaping these trends — and where price differences are most dramatic — view this Eye On Housing article.