Buying a home is a fountain of critical decisions, starting with the choice of location, the number of bedrooms, and increasingly, whether to go with an old or new home.

At one point, new homes were thought to be more expensive than existing homes. But over the last several years, the tables have turned somewhat. Manufacturers have started to answer the call of changing market conditions with smaller, less-costly homes that have transformed new homes into being rather comparable in price. According to the National Association of Realtors, the median price for a new home in the U.S. in August stood at about $420,600, compared with $416,700 for existing homes.

Looking for Something New?

If you get excited thinking about a freshly built home, you’re not alone. More and more buyers find themselves drawn to the appeal of a brand-new space. Recent trends have shown a lot of new construction in suburban and even rural areas. Developers have found these locations more affordable as regards building to enable them to keep new homes competitively priced alongside existing homes in busier areas.

With new builds becoming ever more accessible and increasingly available, here’s what you should know about how to navigate the new construction market.

Where to Find New-Construction Homes

If new construction is on your mind, the South should be on your radar. The Sun Belt-particularly in states like North and South Carolina, Texas, Tennessee, and Georgia-has heated up as a hotbed for new construction.

It makes a lot of sense that the Southern surge does, given this area of the country has grown quite significantly since COVID-19. Indeed, some Sun Belt states have increased their population by 10% in just a couple of years. Experts say an additional 19 million people could move to the region in the next ten years, which would be even greater demand for housing.

The analyst in a recent report attempted to explain: “New construction in these areas not only provides homes for people to stay in but also aids the local economy considerably.

More Homes to Choose From

But the silver lining in all this new housing provides some good news for those who held off on buying during the competitive past few years. Now, though, with interest rates down, more would-be homeowners are leaping back into the water.

Buyers in the major location markets like Spartanburg, SC, and Sanford, NC, are more likely to have an inventory of new homes than the existing ones. “For example, The Carolinas comprise the top of the new-construction-friendly city list, offering more choices to prospective buyers who are finding dismal supplies of older homes,” the report added.

In fact, the supply of new homes in several Sun Belt markets has driven prices down in some areas. For instance, the median price of a new build can actually be lower than that of an existing home in cities such as Sanford and Raleigh, NC, or even Boise, ID. That opens exciting possibilities that may enable buyers to get more value for money in such areas.

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New-Construction Perks

Still on the fence about whether to buy new? Well, the benefits of a new-construction home may very well change your mind.

For one, developers are sweetening the deal with attractive incentives; think help with closing costs, upgraded materials, or mortgage rate buy-downs-which punch in a temporarily reduced interest rate. Plus, there are fewer repairs and less time spent on renovations with a new build. New homes are generally more energy-efficient, which can create significant savings over time.

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Top 10 Cities Where New Construction Is Booming with the Best Deals

In Sanford, NC, more than half of the listings are new builds, while the median price is about $346,215-just a small undercut from the $350,000 median for existing homes. Sanford will be an excellent option for people looking for an inexpensive new home within a vibrant and growing area.

Spartanburg, SC, also has a strong new-construction presence; 54.2% of the listings are new builds. In this area, the median list price for new homes is $303,900-just above the median of $299,900 for older homes, by a small premium of 1.33% that may be worthwhile to some for a brand-new space.

In Raleigh, NC, nearly half-49.16%-of the listings are new construction. Buyers of this market might enjoy a bit of a bargain, as new homes list around $450,000 compared to $465,000 for existing properties. That’s a savings of about 3.23% if you opt for new over pre-owned.

New construction accounts for 46.61% of the Burlington, NC market. The median list price for new construction in Burlington is $374,490. That compares to a median of $325,000 for existing homes, representing a premium of about 15.23%. To those seeking modern amenities and no headache when thinking of maintenance, this price may just be worth every penny.

In Oxford, MS, 46.24% of listings are new homes and are priced at an average of $573,310. This carries a 17.03% premium over the median of $489,900 for existing homes-a true reflection of the allure and quality globally expected from new developments within this charming Southern city.

Boise, ID is another stronghold for new construction, which rounds out 45.22% of the market. Curiously enough, the median price for a new home in Boise hovers at $519,990, thus beating its median price for existing homes by about 5.28%, standing at $549,000.

Likewise, in Greenville, NC, new builds comprise 44.99% of listings, with a median price of $317,990. This represents an increase of 17.77% from the median existing home price of $270,000. Many buyers find new homes in Greenville to be fresh and appealing in their design and energy efficiency.

New builds in El Paso, TX, make up 44.71% of the total real estate in the market. The median list price for this location is $308,000, showing a 10.02% premium over existing homes that are price-set at $279,950-a testament to how desirable new, energy-efficient homes have become in this sun-kissed city.

Hinesville, GA also boasts a very robust new-construction market, with 44.15% of its homes new. The median for these properties is $282,700, or about 4.74% higher than the median of $269,900 for older homes. For buyers here, the added expense may be well worth it for updated amenities and fresh finishes.

Rounding out the list is Iowa City, IA, at 43.6% of homes being new construction. The median here is $385,990 for new properties, carrying a 17% premium over existing homes at $329,900. This is a very active college town with loads of amenities and plenty of new options to choose from when it comes to moving.

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