Do Americans Prefer New or Old Homes?

What do Americans think about newly constructed homes versus existing homes? A survey of homebuyers and current homeowners, conducted by 2-10 Home Buyers Warranty, reveals home preferences and assumptions. 

Homebuyer Preferences 

Homebuyers said they thought old homes are better constructed (77%) compared to new homes (23%). They also believed old homes hold better value (59%), and 58% said they would pay more for an old home (if it was in good condition) than a new home. 

The top pros homebuyers listed for old homes were: 

1. Lower price (42%) 
2. Established neighborhood (41%) 
3. Location (36%) 

The top pros for new homes were: 

1. Minimal repairs (49%)
2. Energy efficiency (49%) 
3. Under warranty (42%) 

Overall, among the homebuyers surveyed, 62% preferred old homes, and 38% preferred new homes. 

Additionally, 59% of buyers said they think there is a stigma around new construction, and 88% said new builds are overpriced. 

Homeowner Thoughts 

The homeowners who were surveyed had similar sentiments to the homebuyers. The survey revealed that 81% of homeowners thought old homes were better constructed, 66% believed old homes hold better value and 59% said they would pay more for an old home. 

Homeowners also listed the same top pros for both old and new homes as the homebuyers, and overall, 60% of homeowners said they prefer old homes, compared to 40% who chose new builds. 

New Home Stats 

Eighty-nine percent of new homeowners said they were their homes’ first occupants, and 48% said they lived in a custom build. Fifty-three percent said they had a structural warranty. 

Additionally, 14% of new home homeowners said they encountered a major issue in the first two years of occupancy, with the top systems affected being plumbing, HVAC and the roof. The average cost of repair was $4,461. 

Old Home Stats 

Seventy-seven percent of homebuyers reported that they saw more available old homes than new homes in their markets, and 73% said they have primarily looked at old homes. For homeowners, 59% said they lived in a home built in 1999 or earlier. 

Moreover, 32% of those who lived in both old and new homes said they preferred old homes.