The Gap Is Shrinking: Why New Homes Are More Affordable Than You Think in 2025
For years, most people believed one thing about the housing market: Used homes are cheaper than new homes.
And historically, that’s been true. New homes have often sold for $25,000–$65,000 more than used homes, depending on the year. But in 2025, the market looks different. The price gap between new and used homes is smaller than ever — and in some cases, it’s disappeared completely.
Even though some used home asking prices are being reduced, new homes — especially at Red Door Homes — remain more affordable, more personalized, and a better long-term value than ever before.
Let’s break down what’s changed — and what it means for you.
What’s Happening in 2025?
Across the U.S., the average price of a used home in early 2025 is about $416,900. The average price of a new home? $431,500 — just $14,600 more than a used home!
At Red Door Homes, our average new home price so far in 2025 is just $260,000. That’s not just competitive — it’s significantly lower than most resale homes in today’s market.
It’s important to note: Our price doesn’t include land or lot improvements, which vary by customer and location — but even with those costs added, we often come in at or below the price of comparable resales.
Why the Gap Is Smaller Than Ever
Here’s why this shift is happening:
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Used home prices surged over the last few years due to low inventory. Now that more listings are hitting the market, sellers are adjusting their asking prices — not because home values are crashing, but because demand has cooled and buyers are no longer paying peak prices.
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New home builders have adapted. Builders like Red Door Homes are meeting the market where it is — offering flexible plans, efficient footprints, and even below-market financing.
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Labor and material costs have risen across every industry. From McDonald’s to homebuilding, wages and production costs have increased significantly — and they’re unlikely to come down. In fact, lower interest rates may spark more demand, pushing construction costs up again. So if you're waiting for prices to drop… they probably won’t.
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New homes were always seen as a luxury. What once cost significantly more now costs about the same — making the choice to build new not just smarter, but more attainable.
Why Building New Is Still the Smartest Option
At Red Door Homes, we help make your Dream Home a reality — and a smart investment. Here’s what sets us apart:
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Average new home price in 2025: $260,000
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You choose your location. Build near family, out in the country, or anywhere that feels like home.
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You control your lifestyle. Want privacy? Land? An HOA-free life? You’ve got options.
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You design your home. Select the layout, finishes, and features that fit your life.
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You’re protected. Every home comes with our 1-year door-to-door warranty, 2-year mechanical warranty, and 10-year structural warranty — so you can focus on living, not fixing.
You’re not just buying a house. You’re building a home that reflects your vision, fits your land, and supports your future.
Final Thought
The big price gap that once separated new homes from used ones? It’s nearly gone. And in many cases, new homes are now the better deal — especially when you consider customization, efficiency, and peace of mind.
If you’ve been waiting for the right time to build, that time might be now.
Let’s talk about your land, your vision, and your budget — and help you take the next step toward your Dream Home.
