Existing home prices outpace new homes for 4th straight quarter
The quirky trend can be explained in part by the flexibility of home builders as they navigate higher material costs and persistent economic uncertainty.
The real estate market slowdown has been marked by a few strange themes over the past few years. One of the more unusual trends: Existing homes have often been more expensive than brand-new homes.
A $1,400 difference: This was the case in the first quarter of 2026, according to the National Association of Home Builders (NAHB). Drawing on U.S. Census Bureau and National Association of Realtors data, the NAHB found that the median price for a new home was $403,200 in early 2026, $1,400 less than the median price of an existing home.
New, existing home prices duel for top spot: According to NAHB's data, new home prices were significantly higher than existing home prices from 2010 to 2020, when the gap narrowed briefly before widening again in 2024.
For the past two years, existing home prices and new home prices have been swapping places in terms of which is higher. Over the past four quarters, existing homes have held the top spot despite the strong headwinds new home construction has faced as energy price spikes and tariffs drove up material costs.
Why is this happening? New home prices have dipped 4.7% in the past year while existing home prices have trended up — albeit at a much slower pace, NAHB Manager of Economic Services Onnah Dereski noted in a recent blog post.
"While overall home prices remain elevated compared to historical norms, new homes prices have moderated due to tactical builder business decisions, whereas existing homes prices continue to increase because of lean supply and in some markets a lack of price discovery for existing homeowners," Dereski wrote.
Flexibility and geography also factor into the equation. Home builders have been countering material cost increases by building on smaller lots, constructing smaller homes and offering incentives to attract buyers. Meanwhile, new homes tend to be the most expensive in the West and Northeast, so surges or declines in sales for those regions can impact the overall median price.
Regional shifts may have been at play this spring as new home prices jumped 8% between March and April. While April was a sluggish month for new home sales, which dropped 6.2% compared to March, Realtor.com Senior Economist Joel Berner noted that the West saw an 18.7% increase in sales for that time period.