Is New Construction Really Cheaper Than Resale in Today’s Market?
Once Again, National Numbers and Eye-Catching Headlines Prove to Be (Slightly) Untrue For the Northern Virginia Real Estate Market. Let’s Dive In!
I read a national article that nationally averaged the national new construction home costs vs. the national resale costs.
I know, I know… That sentence doesn’t make much sense. Fundamentally, it does. The point I’m making is that I often say Northern Virginia real estate is on an island. Many facts that apply to the national averages don’t apply to real estate in the DMV. So, like your relationship with your father's brother's nephew's cousin's former roommate, it’s complicated. Let’s try to square this circle.
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If you’re weighing your options on buying a new construction home or a resale home and need more information, contact me HERE. Now let’s get educated.
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Short answer/TLDR: Not by sticker price, new is still pricier. But once you factor in incentives, the gap narrows…and the monthly payment is where builders try to win. Let me tell it straight.
I pulled these numbers this morning, 8/26/2025. Depending on when you find this real estate educational gold, I may need to rerun these numbers for you. Just ask. These sales numbers represent Alexandria City, Arlington, Fairfax, Fauquier, Loudoun, and Prince William Counties, dating back to July 1st, 2025. I’m using medians for apples-to-apples price and $/sqft, and averages for concessions (because medians can get wonky—more on that below). OK!
The quick scoreboard
Median sale price
New: $897,550 vs. Resale: $760,000 (+18.1% for new)Median $/SqFt
New: $356 vs. Resale: $333.84 (+6.6% for new)Average seller concessions
New: $19,745 vs. Resale: $11,672 (new offers +$8,073 more on average)Average “effective” closing price (close price minus concessions—doesn’t include rate buydowns)
New: $1,284,036 vs. Resale: $908,403 (new construction sticker is still higher)List-to-close behavior (average CLP%/LP%)
New: 101.24% (slightly over list) vs. Resale: 99.31% (slightly under)
So…is new construction “cheaper”?
By sticker and $/sqft? No. New construction is coming in higher than resale across NoVA on both the median sale price and median $/sqft.
By payment? Sometimes. Builders are throwing more at the problem: higher average concessions and (often) interest-rate buydowns. The number’s snapshot shows bigger dollar credits on new, and when you add a rate buydown, the monthly payment CAN beat a similarly priced resale even when $/sqft doesn’t. Translation: the check you write each month might favor new, even if the headline price doesn’t.
When new can win your wallet
Rate buydowns: A 2–1 or permanent buydown can trump a $10–$20k price cut in monthly terms. Let’s talk to LOCAL lenders!
Warranty + punch-list: Lower near-term repair spend keeps total cost of ownership tight the first 3–5 years. Newer systems in place = less maintenance/repair/replacement dollars.
Energy efficiency: Newer windows, doors, and systems shave utility costs (not the fire-engine-red Ferrari, but the dependable 2015 Tacoma).
When resale can crush it
Location and lot: Tighter commutes, bigger yards, mature trees (often impossible in a new build tract).
Finished spaces: Basements, decks, fencing, blinds. Resale value that builders price like luxury add-ons.
Negotiation room: The current data shows resales close slightly under list on average; leverage lives here.
Buying strategy (practical, not fluffy)
Price vs. Payment model: Put the builder’s incentive sheet next to the resale’s net sheet. Compare monthly, not just sticker.
Value the freebies: Add the cost of “already-done” resale items (fence, blinds, washer/dryer, deck, landscaping). These matter.
Inspect the incentive: A $20k credit isn’t the same as a point-and-a-half buydown. Do the math, or have me do it.
Lock window: Builders’ rate promos can be time-boxed. If it pencils, move; if not, let’s keep shopping.
Seller strategy (you’re competing with builders)
Price to the market that exists, not the one you miss. Builders don’t argue with appraisals; they throw incentives.
Pre-empt objections: Offer targeted credits (rate buydown or closing help) instead of chasing price cuts.
Merchandise like a model: Light, paint, floors, hardware. If you want builder-level money, show builder-level condition. Please, please, please have your house looking brand new when it’s on the market.
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If you’re weighing your options on buying a new construction home or a resale home and need more information, contact me HERE. Now, Let’s Go Get It!
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