New-home construction is picking up in some markets. But what lures some buyers to new-home construction over a previously owned home?
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Older home buyers—between 54 to 72 years old—are the most likely to purchase a new home, according to the National Association of REALTORS®’ newly released 2019 Home Buyers and Sellers Generational Trends Report.
Many buyers—38 percent—who purchased new homes say they were looking to avoid renovations and problems with plumbing or electricity. For younger generations, that seems to be a particular perk with new-home construction. Seventy-four percent of buyers 28 years old or younger, and 51 percent of those between the ages of 29 to 38 who bought new, said they did so to avoid renovations. That is significantly less than older buyers—aged 64 to 72—who said their primary reason to buy new is because of the ability to choose and customize design features.
On the other hand, among buyers who purchased a previously owned home, one of the top influencers tended to be a better price. Studies show new homes tend to be about 26 percent more expensive than an existing home.