New Construction vs. Older Homes—Why New Builds Cost Less Than You Think
Summary
New construction homes may be a strategic investment for long-term rental properties due to lower maintenance costs, energy efficiency, and the ability to attract quality tenants. Investors should consider new builds, especially in markets offering incentives like rate buydowns, to potentially lower expenses and increase profitability.
Key Insights
- •Only 11% of owners of newly built homes (under four years old) spent over $100 per month on upkeep, compared to 26% of all homeowners.
- •As of mid-2025, the median new home price was $401,800, while existing homes averaged $441,500, a 9% price difference in favor of new builds.
Action Items
- ✓Consider investing in new construction homes, especially in markets with incentives like rate buydowns, to potentially reduce costs and attract better tenants.Effort: mediumImpact: medium
Tools & Resources
- →Lennar Investor Marketplace: Lennar Investor Marketplace allows investors to browse curated, turnkey homes across 90+ markets.
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