Connecticut leads the nation in the disparity of building a new home versus buying an existing one.
According to LendingTree .com, the cost of a newly-constructed house here is 125.9% percent more than the cost of an existing house ranking Connecticut and Pennsylvania as the only two states in the nation where new construction is double the price of an existing home.

LendingTree noted that although buyers prefer brand new when it comes to clothing, cars or houses, new comes with a hefty pricetag. On average, new homes in the U.S. cost 37.5% more than existing homes — and require an additional $46,114 in annual income to cover the mortgage. However, the gap between new and existing home prices also varies by state.

While the average price gap between an existing home and a new one is 37.5% nationally, the disparity is much more pronounced in some states, exacerbating affordability challenges. In Connecticut, homebuyers purchasing an existing property can expect to pay a median price of $441,210; however, shoppers in the market for a newly constructed home would have to shell out an additional $555,660, or $996,870 total — a 125.9% increase.

Pennsylvania is close behind, with a 121.4% price difference. Borrowers in the Keystone State pay a median price of $297,831 for an existing home and $659,468 for a new one.

In fact, Connecticut and Pennsylvania are the only states where new-home prices are more than double those of existing properties on average. One factor is likely geography, as well as a higher cost of living in those states compared to the rest of the country. New-construction homes tend to be more expensive in the Northeast, with a median price of $784,900, according to NAHB.

Additionally, in Connecticut, pressures on the home construction industry — including strict building requirements, lengthy local approvals, limited land availability and a shortage of skilled trade workers — have led to a steady decline of newly constructed single-family homes in recent years.

The LendingTree study broke down new and existing property values nationwide, highlighting how much more income buyers need to afford a new home in each state.

Key findings:
– On average, new homes across the U.S. are 37.5% more expensive than existing homes. The average price difference is $146,581, with new homes costing a median of $537,791 and existing homes $391,210.
– Connecticut and Pennsylvania are the only states where new homes are more than double the cost of existing ones. New homes in Connecticut cost 125.9% (or $555,660) more on average than existing homes, with Pennsylvania close at 121.4% (or $361,637).
– California, Vermont and Delaware are the only states where existing homes are significantly more expensive on average than new homes. Existing homes in California cost 24.7% (or $193,682) more, ahead of Vermont at 8.8% (or $34,018) and Delaware at 8.0% (or $32,600).
– Households need an average of $46,114 more in annual income across the U.S. to afford new homes compared to existing ones. On average, households need annual incomes of $166,273 for new homes and $120,159 for existing homes.
– Households in four states need $100,000-plus in additional income to afford new homes compared to existing ones. Connecticut households require an average of $188,080 more, needing incomes of $149,341 for existing homes and $337,421 for new homes. Massachusetts ($122,357 difference), Pennsylvania ($115,512) and the District of Columbia ($104,938) follow.

Nationally, new homes are 37.5% more expensive on average

A newly constructed home in the U.S. costs about 37.5% more than an existing property on average. The median home value of a brand-new home is $537,791, compared with $391,210 for an existing home — a $146,581 difference according to data from the National Association of Home Builders (NAHB), U.S. Census Bureau and Federal Housing Finance Agency (FHFA) data.

The gap between new home prices and existing home prices is ever-shifting along with market fluctuations, although newly constructed properties are typically valued higher than existing homes.
The average difference between new and existing home prices over the last five years was $26,700.
Multiple factors contribute to the higher prices of new homes.

“One of the big reasons is simple demand,” says Matt Schulz, Lending Tree chief consumer finance analyst. “People are frequently willing to pay more for new homes, so prices go higher.” Other factors contributing to the higher prices of new homes include high construction costs, limited supply, land prices and local policy.
“It can be super-expensive to build a new house from scratch, thanks to high costs for labor, materials, permits, land and other aspects of the homebuilding process,” Schulz says.

Existing homes significantly more expensive in California

Six states buck the national trend of higher-priced new homes, with existing properties priced above new builds. In California, newly constructed homes have a median price of $591,116, while existing homes cost $784,798 — 24.7%, or $193,682, more. California’s double-digit gap between new and existing home values is the largest discrepancy in the country. The Golden State has struggled to keep up with housing demands for decades, although the disparity between supply and demand has started to slowly close thanks to a slight building boom as a result of the COVID-19 pandemic.

Still, the roadblocks to building new homes keep inventory low: Expensive land, permit delays, local fees, high material costs and labor shortages have limited new construction and increased competition for existing homes.

Vermont is a distant second behind California. Households in this New England state can expect to pay a median price of $352,739 for a new home but would have to come up with $386,757 for an existing property — 8.8%, or $34,018, more. Delaware follows with the third-highest discrepancy between new and existing home values: $373,666 versus $406,266, an 8.0%, or $32,600, difference. Virginia, Maryland and Utah households also pay more for existing homes than new-construction properties.
Households in Connecticut also need significantly more income to afford a home, new or existing notes the LendingTree researchers.

Using the NAHB “Households Being Priced Out of the Housing Market” report, how much annual income a household needs to qualify for mortgages on median-priced new and existing homes showed that nationwide, homebuyers need an average annual income of $166,273 to purchase a median-priced newly constructed home. That is $46,114 more than the $120,159 required for an existing property.

But in Connecticut the situation is even more dire. Connecticut buyers need nearly $200,000 more. Households in the Nutmeg State need an average yearly income of $149,341 for an existing home, and $337,421 for a new one — a difference of $188,080. That difference leads the nation. Homebuyers in neighboring Massachusetts are second in this statistic and need $122,357 more in annual income for a new home there, requiring $324,058, versus $201,701 for an existing property. In third place is Pennsylvania, with a difference of $115,512, and then the District of Columbia ($104,938) follows with the average annual income needed for a new home in D.C. $312,021 versus $207,083 for an existing house, the study notes.

One explanation is the add-on cost of climate change rules legislators built into construction costs in Massachusetts. New building codes could be a factor in high construction costs and increased new home prices, according to a report from the Home Builders & Remodelers Association of Massachusetts.

In the District of Columbia, limited land availability drives up the cost of new construction and the income required to obtain it. Maine, New Hampshire and Rhode Island also ranked in the top 10 of requiring more household income to own an existing or new home.

By contrast, homebuyers in six states can purchase a new home with a lower annual income than that needed for an existing property. California residents can qualify for a new home with $173,786 in annual income, $56,942 less than the $230,728 required for an existing one.

Other states where borrowers need less money to qualify for a new home than an existing property are Vermont ($11,093) Delaware, ($9,457), Virginia ($2,548), Maryland ($526) and Utah ($477).

Anyone could make a strong case for buying either a brand-new or an existing home. Both options have distinct pros and cons: Newly built homes offer modern conveniences and customization, while older homes often come with charm, character and established communities. While 61% of homebuyers say they prefer new construction, according to NAHB, others are drawn to the unique appeal of preowned properties.

“You would be well-served to keep an open mind when it comes to choosing between new and existing homes because there are so many different factors that go into making a place right for you,” Schulz says.
Researchers utilized the National Association of Home Builders (NAHB) “Households Being Priced Out of the Housing Market” report to identify median new-home prices in 2025 and the income needed to qualify for mortgages. An income-to-price difference was determined using these figures.

For existing-home values, researchers utilized U.S. Census Bureau 2023 American Community Survey (ACS) microdata for median values by state. 2023 values were adjusted to 2025 values using the Federal Housing Finance Agency (FHFA) House Price Index. The calculated 2025 median-home values were then compared to 2025 new-home values to calculate the percentage and dollar differences by state.
To estimate the household income needed for existing homes, the previously calculated income-to-price ratio from new-home prices was applied to the adjusted 2025 values for existing homes. LendingTree said it then compared the household income required to buy new homes and existing homes by state.

The link to the LendingTree report is here – https://www.lendingtree.com/home/mortgage/new-vs-existing-study/