6 Reasons Why New Construction Is Outselling Resale

For years, one housing trend seemed constant: new construction homes typically cost more than existing resale homes. After all, new builds are modern and customized, while resale homes have already lived a life or two.

But in 2025, that pattern flipped. In June, new homes were selling for $28,000 less than existing homes, a 6.5% gap. According to Realtor.com, this gap narrowed to about $19,000 (4%) in July, but it also marked the longest stretch of price inversion on record at four consecutive months.

This shift is reshaping the housing market for all types of buyers, from first-time homeowners to downsizers. So why are buyers increasingly choosing new construction over resale? Here are six key reasons driving the change.

1. Mortgage Buydowns Are Making New Homes More Affordable

One of the biggest game-changers is a mortgage buydown. A mortgage buydown allows homebuyers to lower their interest rate for the first few years of their loan in exchange for an upfront fee. This fee is often covered by the seller, or in the case of new builds, the homebuilder.

In a market where affordability is tight and interest rates remain elevated, these buydowns can make a big difference. By lowering monthly payments early on, builders are helping buyers ease into homeownership with less financial strain.

Resale sellers rarely have the cash to offer this kind of incentive, but builders with larger inventories and deeper capital reserves often do. As a result, buyers can sometimes find that a brand-new home actually costs less per month than a resale listing, even at the same sticker price.

2. Quicker, Easier Closings

Closing on a resale home can be unpredictable. On average, it takes 86 days to sell a home, and once an offer is accepted, closing can take another 35 days. During that time, a lot can go wrong, such as an inspection revealing hidden issues or the seller backing out if they can’t find a new home in time. 

New construction homes, by contrast, remove much of that uncertainty. There are no previous owners, no surprise repairs, and no hidden damage behind the drywall. At Onyx+East, for example, our quick move-in homes in Indiana, Ohio, and Florida are ready when buyers are, so the process from contract to moving in can be much faster. 

3. Industry-Leading Warranty Programs for Peace of Mind

One of the biggest advantages of buying new is the protection that comes with it. Onyx+East homes include a 10-year warranty program based on the strongest insurance available in the industry. This covering structural components, as well as additional protection for material and workmanship defects, mechanical systems such as HVAC, plumbing, and electrical, and even roof leaks.

For buyers, that means:

• Fewer out-of-pocket repair costs
• Greater confidence in long-term durability
• Protection resale homes simply can’t offer

Instead of worrying about what might break next, or budgeting for major repairs, buyers can settle in knowing their home is backed by a comprehensive warranty.

4. Modern Construction and Built-In Energy Efficiency

Anyone who’s watched a home renovation show knows that older homes can hide costly problems including outdated wiring, unsteady foundations, or inefficient HVAC systems that drain your budget over time.

New construction homes, on the other hand, are built to modern safety codes and equipped with energy-efficient, smart-home features designed for today’s lifestyle. In Onyx+East communities such as Flora in Carmel, Indiana and Everly in Cincinnati, these features include things such as Google Nest smart thermostats, Energy Star-certified windows, electric water heaters, and LED lighting.

The result: homes that not only cost less to maintain, but also support sustainability and lower monthly utility bills.

5. Personalized Design Options and More Customization

Resale homes often require compromises, from outdated finishes to floorplans that don’t quite fit your lifestyle. New construction eliminates that, and makes designing your home a personalized journey.

Through the Onyx+East Design Center, buyers can personalize their home with curated design selections and finishes that reflect their style, such as choosing flooring, cabinetry, countertops, lighting packages, hardware and fixtures. Instead of renovating after move-in, buyers get a home that feels uniquely theirs from day one, saving time, stress, and long-term costs.

6. Designed for Modern Living

The pandemic reshaped what people want from their homes. Remote work isn’t going away, and many homeowners now prioritize flexibility and functionality. This means looking for floor plans with dedicated home offices, open living areas, and multi-use “flex spaces” that can evolve, from an office to a workout room to a quiet reading nook. Modern families also prefer smaller, easier-to-maintain lots that maximize indoor space while minimizing yard work. 

Across Onyx+East’s communities, we’re seeing this shift firsthand with buyers looking for homes with tall ceilings, open layouts, wellness rooms, and connected neighborhood amenities that make everyday life more convenient and social.

The consensus on whether or not it’s a buyer’s or seller’s market is out, especially depending on where you live. One thing we can all agree on, however, is that now is the time to consider buying a new home instead of a resale to make it your own and save some money in the process.

Today’s buyers are finding that a new home can cost less upfront, close faster, and deliver better long-term value than resale options. With flexible builder incentives, energy-efficient designs, and spaces built for how people live today, it’s no surprise that more buyers are choosing new construction homes. If you’re ready to make a move, there’s never been a better time to explore what new construction can offer, and make a brand-new home your own.