📊 New Construction vs. Existing Homes 🏘️ - What’s the Best Buy in 2025?

Hello Hampton Roads, 

Are you weighing the pros and cons of buying a new construction home versus an existing home in Hampton Roads? With home prices shifting, builder incentives rising, and inventory increasing in 2025, understanding your options has never been more important. Whether you're relocating to Virginia Beach, Norfolk, or Chesapeake, this local real estate guide will help you make the right move — based on your budget, lifestyle, and timeline.

Want personalized advice? Book a free home buying consultation with me, Liz Schuyler. Let’s talk about your goals and help you get a plan in place. 

Is a New Construction Home Worth it in 2025?

In 2025, the price difference between new construction homes and existing homes is the narrowest it’s been in decades. This shift is driven by changing market conditions, including rising inventory, builder incentives, and stabilizing construction costs.

U.S. Median Home Prices (Q1 2025):

• 🏗️ New Construction Homes: $416,900

• 🏠 Existing Homes: $402,300

• 📉 Price Gap: $14,600 — just 3.6% more for a new home!

This modest gap contrasts sharply with the long-term average difference of $50,657 (2010–2024) and the record high of $64,200 in Q4 2022. For today’s homebuyers, the cost of going new is more competitive than ever.  

How do existing home sales compare to new construction?

New home sales make up the highest share of sales since April 2025. Builders are motivated sellers and are making attractive deals with buyers to move inventory!

According to the latest Housing Market Index (HMI) survey, 37% of homebuilders reduced prices in June 2025—the highest percentage since the NAHB began tracking this data in 2022. In addition to price cuts, many builders are offering attractive incentives like mortgage rate buydowns, closing cost assistance, and free or discounted upgrades to attract today’s buyers.

But is it the same in Hampton Roads? Let's take a look!

Hampton Roads New Construction Market Update – 2025 Trends and Insights

Local markets matter and in Hampton Roads, the majority of sales are resale homes simply because that is the majority of the house stock.  According to data from the latest Hampton Roads Real Estate Market Review and Forecast (March 2025), last year, the new home sector held steady, with buyers consistently drawn to the appeal of brand-new homes, modern amenities, and builder incentives.

The price gap is not as close as seen in the national numbers. Historically, new construction homes have sold at a premium—often around $100,000 more than resale properties. In the past year, that price gap narrowed slightly to $90,000, translating to an average monthly payment difference of $680. Many homebuyers still view that premium as worthwhile, thanks to reduced maintenance needs, energy-efficient designs, and customizable features.

Sales Volume and Price Trends

While new construction home sales declined by 4.0%, largely due to limited inventory—especially on the Peninsula—home prices continued to rise, reaching an average of $481,813, up 1.3% year-over-year.

One of the most pressing challenges facing new construction in Hampton Roads is the rising cost of land, materials, and government regulation. Nationwide, regulatory costs account for nearly 28% of the total price of a new home. For Hampton Roads, that means roughly $134,900 of a new home’s cost delivers no tangible benefit to the buyer—posing a major affordability hurdle.

The new federal administration has acknowledged this burden and issued executive orders aimed at reducing regulatory overreach to help lower new construction home prices and improve housing affordability.

Shifts in New Home Design

In response to affordability pressures and changing buyer preferences, the average square footage of new homes is trending smaller. Buyers today are prioritizing low-maintenance homes on smaller lots, often in planned communities with shared amenities.

Attached homes (such as townhomes), primarily built by Ryan Homes and other major developers, averaged 1,765 square feet, with a price of approximately $187 per square foot.
Detached homes averaged 2,253 square feet, with a cost of $211 per square foot.

 

Pros of Buying New Construction in Hampton Roads

1. Modern Features & Energy Efficiency
Today’s new homes are built with energy-efficient materials and smart home technology, including:

• High-efficiency HVAC systems

• Tankless water heaters

• Smart thermostats, lighting, and security systems

• Insulated windows and low-flow plumbing fixtures

2. Customization Options
Love the idea of choosing your countertops, flooring, cabinets, and paint colors? With new construction, you’re in the driver’s seat. Many builders in Hampton Roads offer personalization packages or design studios to help make your vision a reality.

3. Lower Maintenance Costs
With all systems, appliances, and finishes brand new, you're far less likely to face surprise repairs in the first few years. Most builders include warranties on structural elements, HVAC systems, and roofing.

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Cons of Buying New Construction

1. Higher Upfront Cost
New construction typically comes with a premium price — sometimes 10% to 20% higher than comparable existing homes. Custom upgrades can also drive costs up quickly.

2. Longer Timelines
Building from the ground up takes time. Most projects in Hampton Roads range from 4 to 8 months. That can be challenging if you’re relocating or need to move quickly.

3. Limited Negotiation
Builders rarely drop their base prices, although you may be able to negotiate closing cost assistance or free upgrades.

4. Community Still Developing
New communities often lack mature landscaping or finished amenities. You may be living next to construction for months — or years.

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Existing Homes: What You Should Consider

Benefits of Buying an Existing Home

1. Established Neighborhoods
Many of Hampton Roads’ most desirable areas — like Ghent, Larchmont, and North End — are filled with historic homes, tree-lined streets, and well-established communities.

2. Better Value for the Money
Sellers of existing homes are often more motivated. You may be able to negotiate a lower price, especially if the home has been on the market for a while.

3. Faster Move-In
Unlike new builds, existing homes are typically move-in ready within 30–45 days — a big plus for military families or buyers on a tight timeline.

4. Room for Negotiation
You’re more likely to get the seller to cover closing costs, include appliances, or address repairs in an existing home sale.

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Potential Downsides

1. Older Systems
Many existing homes have aging HVAC systems, outdated electrical panels, or older roofs — leading to higher maintenance costs.

2. Fewer Modern Features
Unless recently renovated, existing homes may not offer smart tech or open floor plans. But with the right property, you can update on your timeline.

3. Inspection Surprises
Even a home that looks great can have hidden issues. A thorough inspection is essential.

Financial Comparison: New Construction vs. Existing Homes

Feature	New Construction	Existing Home
Purchase Price	Higher	Lower
Customization	High	Limited
Maintenance Costs	Low	Potentially higher
Negotiation Power	More Limited	Higher
Move-in Timeline	3–8 months	30–45 days
Neighborhood Maturity	Developing	Established

While upfront costs may be higher with new construction, you may save money long-term on utilities and repairs. Conversely, existing homes can offer instant equity and negotiation flexibility — if you’re willing to do a little work.

Who Should Choose What?

Choose New Construction If You:

• Want a move-in-ready home with modern features

• Have a flexible timeline

• Value energy efficiency and smart tech

• Prefer not to worry about repairs in the first 5 years

• Want to customize your home’s design

Choose an Existing Home If You:

• Need to move quickly

• Want to be in an established area

• Are working with a tighter budget

• Don’t mind updating a home over time

• Value negotiation flexibility

Still undecided? Check out my other blog post on What Buyers Need to Know When Buying New Construction Homes 

Start Your Home Search with Confidence

✅ Ready to compare Hampton Roads homes and see if new construction or a resale home is right for you?

🔗 Schedule your free consultation now and let’s make a plan tailored to your timeline, budget, and lifestyle.

FAQs: New Construction vs. Existing Homes in Hampton Roads

Q: Is new construction always more expensive?
A: Typically, yes there is a premium for new construction.  But it can save you on future repairs and energy bills.

Q: How long does it take to build a home here?
A: On average, 3–8 months. Weather, permits, and customization can add time.

Q: Can I use a VA loan for both types of homes?
A: Absolutely. VA loans work for both new builds and existing homes — though timelines and appraisal standards may differ.

Q: Are there extra costs to consider with new construction?
A: Yes. Lot premiums, design upgrades, appliance packages, and landscaping are common extras.

Q: What should I look for when buying an older home?
A: Focus on items that are costly to repair or replace such as  the roof, foundation, HVAC, plumbing, and signs of moisture damage — in especially in coastal areas.

Thanks for Reading,

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Check out the latest sales stats in Hampton Roads. Want to discuss your home buying or selling plans and the best strategy to help you get there?  Schedule a free call: https://calendly.com/liz-schuyler