New Homes Save Buyers $25K Over 10 Years. Here’s Where the Savings Are Biggest.

Buyers of newly built homes save an average of $25,335 over the first ten years of ownership compared to buying a 20-year-old home. 

New research from Realtor.com breaks down exactly where those savings come from: lower utility bills thanks to more energy-efficient construction, and fewer major repair costs in the early years of ownership, since systems like HVAC, roofs, and water heaters are brand new and unlikely to need replacing anytime soon.

The savings aren’t evenly distributed, though. Where a buyer lives, how cold the winters get, and how strict local building codes are all play a significant role in how much a new home saves over time. 

In some parts of the country, a decade of lower bills and delayed repairs more than covers the price gap between a new home and an existing one.

To understand where new construction delivers the biggest financial advantage, let’s start at the state level.

The States Where New Construction Saves Buyers the Most

New England dominates the top of the list. Stricter building codes and colder winters amplify the efficiency advantages of newer homes, meaning the gap between what a new home costs to run and what an older home costs to run is wider there than almost anywhere else in the country.

Here are the five states where new construction delivers the biggest 10-year savings:

1. Massachusetts: $38,927 in savings / 46.7% new construction premium
2. New Hampshire: $35,885 in savings / 45.5% new construction premium
3. Maine: $34,763 in savings / 48.3% new construction premium
4. Rhode Island: $34,641 in savings / 46.6% new construction premium
5. Vermont: $33,998 in savings / 25.9% new construction premium

Vermont’s new construction premium of 25.9% is the lowest of the five states listed above, which means buyers there are paying less to go new while still capturing nearly $34,000 in long-term savings.

The South is the most active new construction market in the country, but less demanding building codes and milder climates mean the energy performance difference between new and existing homes is narrower. And so are the savings.

16 Metros Where New Construction Pays for Itself

In 16 of the 300 largest metros in the country, 10-year savings from buying new fully cover the price premium over existing homes. 

These markets 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.

Here are all 16 metros, with new construction and existing home prices and 10-year savings estimates:

1. San Diego-Chula Vista-Carlsbad, CA: New $1,226,693 / Existing $1,210,500 / Savings $29,243
2. St. George, UT: New $684,447 / Existing $683,984 / Savings $27,670
3. Salt Lake City-Murray, UT: New $652,982 / Existing $637,650 / Savings $27,670
4. Seaford, DE: New $580,619 / Existing $567,742 / Savings $22,075
5. Salem, OR: New $545,333 / Existing $517,467 / Savings $31,404
6. Madison, WI: New $534,284 / Existing $527,358 / Savings $25,983
7. Kennewick-Richland, WA: New $528,807 / Existing $516,383 / Savings $21,187
8. Billings, MT: New $525,477 / Existing $504,142 / Savings $28,520
9. Merced, CA: New $455,719 / Existing $429,644 / Savings $29,243
10. Jacksonville, FL: New $415,901 / Existing $411,583 / Savings $16,644
11. Bloomington, IN: New $402,325 / Existing $390,692 / Savings $28,836
12. Greenville-Anderson-Greer, SC: New $391,793 / Existing $390,098 / Savings $16,163
13. San Antonio-New Braunfels, TX: New $339,642 / Existing $329,083 / Savings $18,227
14. Hattiesburg, MS: New $317,817 / Existing $302,683 / Savings $25,997
15. Spartanburg, SC: New $315,248 / Existing $314,967 / Savings $16,163
16. Abilene, TX: New $310,873 / Existing $298,933 / Savings $18,227

The list spans a wide range of price points, from San Diego at over $1.2 million for new construction down to Abilene at just over $310,000. 

Salem, OR leads all 16 markets in 10-year savings at $31,404, despite sitting in the middle of the list by price. Salem’s 10-year savings covers the premium with more than $3.5K to spare. 

Why the Real Savings Are Probably Even Higher

The $25,335 figure is already pretty compelling, but Realtor.com’s research suggests it may understate the full financial advantage of buying new. 

A few factors that aren’t baked into the headline savings estimate can add up quickly, including warranties that cover HVAC repairs, price negotiations and mortgage rate buydowns. 

Realtor.com senior economist Joel Berner framed it this way:

“These savings estimates are actually conservative. 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.”

For buyers who’ve been doing the math on new construction, the listing price is a starting point. 

The full picture, factoring in a decade of lower bills, delayed repairs, builder incentives, and negotiating flexibility, makes a strong case that new often costs less than it looks.

The case for new construction has never been purely about getting a shiny new home. An average of $25,335 in savings over ten years, before factoring in builder incentives or warranty coverage, is real money. 

And if you’re working with buyers who are on the fence about new construction, once you know their reasons, this data could give them the clarity they need.