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 $30,000–$50,000 more than used homes. 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 gone completely.

Even though used home prices are starting to fall, new homes (especially at Red Door Homes) remain more affordable and more valuable 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 $403,700. The average price of a new home? About $403,600 — nearly the same.

And at Red Door Homes, our average new home price so far in 2025 is just $260,000. That’s not just competitive — it’s lower than most resale homes in today’s market.

Why the Gap Is Smaller Than Ever

There are a few key reasons this shift is happening:

• Used home prices rose too quickly during the last few years, and now they’re starting to fall.
• New home builders, like Red Door Homes, already made adjustments — offering flexible plans, smaller footprints, and below-market financing to meet buyer needs.
• Costs to build are still high, which means new home prices aren’t likely to drop much further — but they’ve already leveled out.

So while used homes are coming down, new homes are holding steady — at prices lower than we’ve seen in years.

Why Building New Is Still the Smartest Option

At Red Door Homes, we make building your Dream Home more affordable — and more personal — than ever before.

Here’s what sets us apart:

• Average home price in 2025 of $260,000
• You choose your location — build near family, in the country, or wherever feels right for you
• You control your lifestyle — more privacy, no HOA (unless you want one), and room to grow
• You design your home — layout, finishes, and features that reflect how you live
• You're protected — with our 1-year door-to-door warranty, 2-year mechanical warranty, and 10-year structural warranty

You’re not just getting a house. You’re getting a home that fits your life, your land, and your vision.

Yes, used home prices are finally starting to come down. But new homes, especially with Red Door Homes, are more attainable, more personalized, and a better investment than ever.

The big price gap that used to separate new and used homes? It’s nearly gone. And in some cases, new homes are actually the better deal.

If you’ve been waiting for the right time to build, it might be here.

Let’s talk about your land, your vision, and your budget — and help you take the next step toward your Dream Home.