The price gap between new and existing homes is narrowing, as the median sales price of a new home was just $14,600 more than an existing home in the first quarter of 2025, according to U.S. Census Bureau and National Association of Realtors data.
The median price for a new single-family home sold in the first quarter of 2025 was $416,900—$14,600 above the existing home sale price of $402,300.
The average difference between the two home prices over the last five years was $26,700.
The homes are selling at similar price points because home owners who secured low mortgage rates during the pandemic are hesitant to sell now due to elevated interest rates, according to the National Association of Home Builders.
Additionally, higher construction costs and limited supply are increasing prices in both new and existing homes.
“Home builders are committed to ensuring everyone who values homeownership has the opportunity to attain a safe, affordable home,” NAHB Chairman Buddy Hughes said in a statement. “High construction costs and labor shortages continue to be challenges for the residential construction industry.”
Read the full NAHB report here.
