New Homes Save U.S. Buyers $25,335 in First Decade—But Savings Vary by State

Buying a new home could save American buyers thousands of dollars over the first decade of ownership, according to a new report from Realtor.com. The average U.S. buyer who chooses a newly built home saves $25,335 within 10 years, offsetting the higher initial price tag through reduced long-term expenses.

These hidden savings stem primarily from two key factors: energy efficiency and lower maintenance costs. New homes lack the vintage charm of older properties but excel in performance, particularly in reducing utility bills and eliminating immediate repair needs.

Joel Berner, senior economist at Realtor.com, emphasizes the importance of looking beyond the listing price. “Homeownership is not a onetime expense, and the ongoing costs of owning a home are where new construction really shines,” he said. “Buyers who focus only on the listing price are missing a significant part of the financial picture.”

Why New Homes Cost Less Over Time

Older homes often come with hidden expenses that add up quickly. Drafty rooms, inefficient windows, and aging HVAC systems drive up energy bills and require costly upgrades. For example:

• Older windows may have air leaks or single-pane designs, making climate control less efficient than modern multipaned glass.
• Preexisting homes frequently need HVAC, water heater, or roof replacements within a few years of purchase.
• Inefficient insulation in older homes leads to higher heating and cooling costs year-round.

These factors make newer homes a smarter financial choice for long-term affordability, even if their upfront cost is higher.

Regional Savings Vary Widely

Where you buy a new home significantly impacts your savings. In New England, the benefits are substantial—but so are the premiums on new construction.

• Massachusetts: New homes save buyers $38,995 over 10 years but come with a 47% price premium compared to older homes.
• New Hampshire: Savings reach $36,000 with a premium under 45%.
• Maine: Buyers save $35,000.
• Rhode Island: Savings total $34,000.
• Vermont: Savings hit $34,000 with a premium under 45%.

The region’s harsh winters drive up heating costs, making energy-efficient new homes particularly valuable. However, the high premiums mean buyers may not recoup savings as quickly as in other areas.

Nationally, Realtor.com found that buyers in 16 of the 300 largest U.S. metro areas can offset the higher cost of a new home entirely through savings on repairs and energy bills within the first decade.