Newly Built Homes May Be Less Expensive Than You Think

Do you think a newly built home in Chicago means a bigger price tag? Think again.

Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is lower than the median price for existing homes (ones that have already been lived in):

You read that right. That brand new, never-been-lived-in house in Chicago, Illinois, may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off newly built homes in Chicago because you assumed they’d be financially out of reach, here’s what you should know.

You could miss out on some of the best options in today’s housing market.

Why Are Newly Built Homes Less Expensive Right Now?

1. Builders Are Building Smaller Homes

Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below):

As size decreases, the price often follows suit. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them.

2. Builders Are Offering Price Cuts and Incentives

In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5%.

That’s because they want to be sure they’re selling the inventory they have before they build more.

On top of that, 61% of builders also offered sales incentives, like helping with closing costs or buying down your mortgage rate.

These are all ways builders are making their homes more affordable, so these homes sell in today’s market.

Your Next Step? Ask Your Agent What’s Available Near You

If you’re trying to buy a home in Chicago, be sure to talk to your agent. Find out what builders are doing in and around your area and explore newly built homes in Chicago.

They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own.

Newly built homes come with a buying process that differs from that of older, previously owned homes. That’s why it’s so important to have an agent who can explain the fine print.

You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first.

What Experts Say About Newly Built Homes in Chicago

Get a brand-new home with modern features at a price lower than many older homes. Talk to us and see if a new construction home in Chicago is right for you.

If buying a home is on your to-do list, what would stop you from exploring newly built options? Start your journey with a trusted real estate agency in Chicago, Illinois.