Price gap between new, old homes shrinking nationwide

New homes are about 38 percent on average more expensive than existing ones, but the price gap between the two is closing.

The median value for a new home in the U.S. is $537,791, while an already built house costs a median of $391,210, according to a new report from LendingTree, an online lending marketplace.

Over the past five years, the average difference between a newly constructed property and an existing one was $26,700 — but that figure is down almost 60 percent from the decade prior, 2010 to 2019.

Though this gap is closing, those looking to purchase freshly built homes need $46,114 more annual income to buy new homes compared to existing ones. Buyers in Connecticut, Massachusetts, Pennsylvania and the District of Columbia need to earn an extra $100,000 more a year — at least — to be able to pick up a mortgage for a new home.

Across the country, home prices have never been higher. In April, they rose 2.7 percent compared to the year before. However, there are signs that this growth is slowing. And nationwide, new residential construction is down to a level most recently seen during the pandemic.

Connecticut and Pennsylvania are the only states where new houses cost more than double existing ones on average. Buyers need to pay an extra $555,660 for a new home there, where the median price is $441,210. That’s a 126 percent increase.

In Pennsylvania, purchasers of new homes pay about 121 percent more than if they were to pay for an already built property.

Meanwhile, there are six states where it’s cheaper to buy new rather than old.

In California, the affordability difference is starkest. The median price of an existing home there is $784,798, nearly 25 percent higher than the cost of a newly constructed home.