Exploring Housing Choices: New vs. Previously-Owned Homes

Exploring Housing Choices: New vs. Previously-Owned HomesWhen it comes to buying a home, one of the key decisions buyers face is whether to purchase a new construction or a previously-owned property. Understanding the trends and motivations behind these choices can help buyers make informed decisions. Let's delve into the current landscape of housing choices:

Market Share Trends: Due to a lack of new home construction, the share of new homes purchased has increased slightly but remains low at 13 percent. In comparison, existing-home purchases account for 87 percent of the market share. To put this into perspective, in 1985, new home purchases accounted for 15 percent of the market share, while existing homes were at 85 percent.

Motivations for Choosing New Homes: Buyers opting for new homes have specific motivations driving their choices. The primary reasons include a desire to avoid renovations and problems with plumbing or electricity, cited by 45 percent of buyers. Additionally, the ability to choose and customize design features (26 percent) and the amenities offered by new home construction communities (26 percent) are attractive factors for buyers of new homes.

Advantages of Previously-Owned Homes: On the other hand, buyers selecting previously-owned homes have their own set of reasons. The top considerations include better pricing (38 percent) and overall value (36 percent) compared to new homes. Additionally, the charm and character of older homes (23 percent) are appealing to buyers. Interestingly, 18 percent of buyers of previously-owned homes also faced a lack of inventory of new homes, influencing their decision.

The choice between a new construction and a previously-owned home depends on individual preferences and priorities. While new homes offer customization and modern amenities, previously-owned homes often provide better value and unique character. By understanding these trends and motivations, buyers can make informed decisions that align with their housing needs and preferences.

*Statistical Source: National Association of REALTORS' 2023 'Home Buyer and Seller Profile'

 

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