According to the National Association of Home Builders (NAHB) BuilderBooks most recent addition, What Home Buyers Really Want, 60% of home buyers would prefer to buy new construction homes over existing homes. With every other factor remaining equal, today’s buyers are more interested in buying brand-new than used homes.
In the NAHB BuilderBooks, new homes are categorized as both homes built for sale, including the land used to build the home, and any custom-built homes constructed on property already in the buyers’ possession. Other homes are considered preexisting.
This preference in home buyers has shown an upwards shift over the past few years, up six percentage points when compared to 2018. In 2018, only 54% of home buyers said they would prefer a new build over a preexisting one.
There are several factors contributing to the rise of interest in new homes. These brand-new homes offer the state-of-the-art, upgraded features buyers are looking for. With big shifts in technology and Smart Home features, an older home can’t keep up with new builds. These new homes are more likely to be built in and around popular growing areas.
In addition, the COVID-19 (coronavirus) pandemic has also played a role in why home buyers are looking to buy new. Buyers are currently concerned about touring through homes already occupied by other tenants.
While the preferences for a new construction home are up across the board, each generation is showing more or less interest in the type of home preferred when buying. Gen X seems to be the most likely to prefer to buy a brand-new home at 68%, quickly followed by Millennials at 65%. Baby Boomers bring up the rear at a 55% preference to buy a new home over a preexisting home.
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Read the full study of this shift in preference for new construction homes in the NAHB’s What Home buyers Really Want.