"Realtor.com and Pearl SCORE modeling finds buyers of 2025-vintage homes save an average $25,335 on utilities and major systems over 10 years versus buyers of comparable 20-year-old homes, even though new construction lists about $60,000 higher at the median. Savings peak in New England states with recent IECC adoption and heavy heating loads, while Southern states see lower but still meaningful gains."
"In 16 metros, 10-year operating savings fully offset the new-home price premium, and in 50 metros new construction is already cheaper than resale at the median. For builders, developers, residential investors and manufacturers, the research strengthens the case for efficiency- and durability-focused product, supports TCO-based sales and underwriting, and highlights codes and climate as key drivers of long-run housing economics."
"Buyers of 2025-vintage homes can expect to save $25,335 over 10 years versus a 20-year-old (2005) home of the same 1,750-square-foot size, based on: Modeled heating and cooling energy use Replacement/repair costs for HVAC, roofs and water heaters Geography matters: Savings swing widely by state, driven by climate, building codes and local energy price trajectories."
"National gap: Median new-construction home just under $450,000 vs. existing home a bit above $390,000, per Realtor.com's latest New Construction Insights report. 10-year operating savings: Buyers of 2025-vintage homes can expect to save $25,335 over 10 years versus a 20-year-old (2005) home of the same 1,750-square-foot size, based on: Modeled heating and cooling energy use Replacement/repair costs for HVAC, roofs and water heaters"
New construction carries a median list price premium of about $60,000 nationally compared with existing homes. Modeled heating and cooling energy use and expected replacement or repair costs for HVAC, roofs, and water heaters create an average $25,335 advantage in total cost of ownership over the first 10 years for buyers of 2025-vintage homes versus comparable 20-year-old homes. Savings vary by geography, with the largest benefits in New England states that recently adopted the IECC and have heavy heating loads. Southern states show lower but still meaningful gains. In 16 metros, 10-year operating savings fully offset the new-home price premium, and in 50 metros new construction is already cheaper than resale at the median. The findings support efficiency- and durability-focused products and TCO-based underwriting and sales, with codes and climate as key long-run drivers.
#total-cost-of-ownership #home-energy-efficiency #building-codes #real-estate-pricing #hvac-and-major-systems
Read at www.housingwire.com
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