New Construction vs Older Homes: Here’s What To Know

If you’ve started house shopping, you may be weighing your options: new construction vs. older homes. There are a myriad of reasons why buying new is a smart move. For instance, new construction will generally feature a modern layout, is move-in ready, and is energy efficient.

Then again, old homes come with their own list of benefits: They have a certain charm and character that is hard to match in new construction, are typically more affordable, and may feature building materials that are costly to build with today.

There isn’t a right or wrong answer to the question, "Should I buy a new home or an old one?” However, understanding the full scope of pros and cons can help you make a decision that aligns with your home preferences.

Benefits of New Construction

1. Fewer Compromises

While buyers 78 to 98 years old were nearly the least likely age range to purchase a home in 2024 (just ahead of Gen Zers), they were the second most likely to purchase new construction. The reason is that the Silent Generation is the least likely to make compromises on their purchased homes, according to the NAR Home Buyers and Sellers Generational Trends report.

Therefore, if you know what you want in a home and have the budget to make it happen, new construction is often the answer. But if you’re willing to make a few concessions, an old home could save you a few bucks.

2. More Customizations

From the location and architectural style to the floor plan and finishes, you can customize new construction to match your lifestyle, budget, and aesthetic preferences. This ability to design the intricacies of a home is the second most common reason people choose new construction.

3. No Renovations Needed

The most common reason homebuyers who purchased a new home were looking to avoid one main complication: renovations. So, although the price tag of a new home is generally higher, you save time and money on costly home repairs such as:

• Electrical rewiring
• Foundation issues
• HVAC replacement
• Plumbing problems
• Roof repairs
• Siding replacement

You’re likely to spend less on minor monthly maintenance issues as well. The National Association of Home Builders found that, for routine maintenance expenses, 26% of all homeowners spent $100 or more a month on various upkeep costs. However, only 11% of owners of newly constructed homes spent this amount. In fact, 73% of new homeowners spent less than $25 a month on routine maintenance costs.

4. More Energy Efficient

About 1 in 5 homebuyers opted for new construction because they’re more energy efficient. With better insulation, thicker frame construction, stronger foundations, and tighter-fit windows, new construction’s utility costs will be significantly less than old homes.

Benefits of Older Homes

1. Charm & Character

Old homes have a certain charm, character, and patina that new construction can’t entirely match. Whether it’s the architectural individuality or the type of building materials homebuilders once used, they have an undeniable allure.

It should be noted, however, that just because a home was built decades ago doesn’t mean the construction is solid or the materials are safe. For instance, it wasn’t until 1977 that the government banned asbestos, 1978 when construction teams stopped using lead-based paint, and 1986 when lead plumbing pipes were banned.

2. Closer To Friends & Family

The NAR found that the primary reason homebuyers in the 59-and-older age groups were purchasing a new home was to be closer to friends and family. But, seeing as the majority of home purchases (87 percent) are previously owned homes, it’s more than likely that older homes are located closer to loved ones.

3. Mature Landscaping

Long-established neighborhoods often provide more mature landscaping, meaning the lots are surrounded by full-grown trees, shrubs, and other plants, whereas newer developments have freshly planted vegetation. Unfortunately, there’s really no way to expedite the growth. Beyond the look of mature landscaping, the shade from big trees can actually reduce energy costs, and a great yard will boost your property value.

When home shopping, it’s essential to consider just how old a neighborhood is, as trees only live so long. Should you move into a neighborhood where the trees are all reaching the end of their lifespan, the benefit of mature landscaping can quickly disappear.

4. Affordability

When budget is your core consideration, old homes are generally more affordable. For instance, in Erie, Pennsylvania, a single-family home costs an average of $180,000, whereas a custom home starts around $350,000. When it comes to financing, it’s generally easier to get approved for a mortgage for an old house than for new construction, as mortgages for custom-built homes require an additional construction loan and a higher down payment, which means you need more cash upfront.

Deciding What’s Right For You

Deciding on new construction versus an old home is a big decision, but thankfully, you don’t have to make it alone. Maleno helps people with their custom building and real estate needs, so we can help you ensure your purchase aligns with your long-term goals. Reach out today to learn more about the custom building process and start touring houses that could be your dream home.