New Homes Save Buyers $25,000 Over Ten Years, Offsetting Higher Upfront Costs

Realtor.com® today released new research showing that buyers of newly built homes save an average of $25,335 over the first ten years of ownership compared to buyers of 20-year-old homes. The savings are driven by lower energy bills and fewer major repairs. The findings reveal a wide geographic divide, with New England states offering the greatest advantage and Southern states the least, and identify 16 metros where a decade of savings from new construction fully erases the price gap with existing homes. New construction savings come in two forms: lower utility costs from more energy-efficient construction, and delayed replacement of major systems like HVAC, roofs, and water heaters. The analysis draws on data from Pearl, whose Pearl SCORE® rates every single-family home in the country across five performance pillars — Safety, Comfort, Operations, Resilience, and Energy. The analysis finds these benefits vary dramatically depending on where a home is located, how cold the winters are, and how stringent local building codes are. To help buyers see these savings in action, Realtor.com is introducing interactive total cost of ownership content through a dedicated cost of ownership hub and experience on new construction listings, showing personalized ten-year savings estimates on utilities, roof replacement, HVAC, and water heater costs compared to a comparable resale home, giving  buyers a clearer picture of the true cost of ownership before they contact a builder. "Homeownership is not a one-time expense, and the ongoing costs of owning a home are where new construction really shines,” said Joel Berner, senior economist at Realtor.com®. ”Buyers who focus only on the listing price are missing a significant part of the financial picture." The geographic pattern is stark. New England leads the country in new construction savings, with Massachusetts topping the list at $38,927 over ten years. Stricter building codes and harsher winters amplify the efficiency advantages of newer homes in these states. The South, despite being the most active new construction market in the country, sees smaller savings. Less demanding codes and milder climates mean the energy performance gap between new and existing homes is narrower there. Top States for New Construction Savings  State 10-Year Total New Construction Savings New Construction Premium Massachusetts $38,927 46.7% New Hampshire $35,885 45.5% Maine $34,763 48.3% Rhode Island $34,641 46.6% Vermont $33,998 25.9% In 16 of the 300 largest metropolitan areas, the ten-year savings from buying new fully cover the price premium over existing homes. These markets span a wide range of price points and are concentrated in the South and West, where new construction premiums are modest enough to fall within reach of long-run savings. Madison, WI and Bloomington, IN are the only Midwestern markets on the list. Metros Where 10-Year New Construction Savings Exceed the Price Premium  Metro New Construction Median Listing Price Existing Home Median Listing Price 10-Year Total New Construction Savings San Diego-Chula Vista-Carlsbad, CA $1,226,693 $1,210,500 $29,243 St. George, UT $684,447 $683,984 $27,670 Salt Lake City-Murray, UT $652,982 $637,650 $27,670 Seaford, DE $580,619 $567,742 $22,075 Salem, OR $545,333 $517,467 $31,404 Madison, WI $534,284 $527,358 $25,983 Kennewick-Richland, WA $528,807 $516,383 $21,187 Billings, MT $525,477 $504,142 $28,520 Merced, CA $455,719 $429,644 $29,243 Jacksonville, FL $415,901 $411,583 $16,644 Bloomington, IN $402,325 $390,692 $28,836 Greenville-Anderson-Greer, SC $391,793 $390,098 $16,163 San Antonio-New Braunfels, TX $339,642 $329,083 $18,227 Hattiesburg, MS $317,817 $302,683 $25,997 Spartanburg, SC $315,248 $314,967 $16,163 Abilene, TX $310,873 $298,933 $18,227 "These savings estimates are actually conservative,” said Berner. “Builder warranties frequently cover HVAC repairs in the early years, meaning new construction buyers often pay nothing out of pocket. And when you factor in the mortgage rate buydowns builders have been offering, which can translate to roughly $30,000 in savings over ten years, the total financial advantage of buying new becomes even more substantial." The report also notes that builders have been more willing than existing home sellers to negotiate on price, giving buyers additional room to improve the long-run economics of a new construction purchase. Methodology Listing price data come from listings on Realtor.com® in the first quarter of 2026. Utility savings data come from estimates modeled by Pearl, through their Pearl SCORE®. Energy costs are generated by multiplying consumption by retail gas and electric prices, averaged at the state level. An escalation factor sourced from EIA is applied to the state-level costs to generate cumulative savings over time. Replacement and maintenance cost data come from estimates modeled by Pearl with these three components: lifespan and degradation, replacement cost, and maintenance cost. Each component is estimated at the zip code level and aggregated to the state level. National estimates are a weighted average of state estimates based on the number of single family homes. Degree-day estimates are sourced from EIA and totaled by adding heating degree days to cooling degree days. About PearlPearl is a ratings and standards company building the national standard for home performance. Pearl SCORE® rates every single-family home in the U.S. on a 1-to-1,000 scale across five pillars — Safety, Comfort, Operations, Resilience, and Energy — so buyers, sellers, and real estate professionals can understand how a home performs in daily life. Learn more at PearlScore.com.