Editor's Note: This story originally appeared on Inspired Closets.
New construction homes give buyers room to dream about stylish custom layouts, smart energy features, and a clean slate to make their own. But as appealing as these perks are, that blank canvas can come with a bigger price tag, especially when it comes to monthly payments.
For current homeowners looking to improve their living situation, is it better to renovate and fall back in love with your current space, or to sell and move into something brand new?
With interest rates high, homeowners — especially those with growing families or changing needs — are increasingly choosing to improve what they have instead of moving. This trend is reflected in record levels of investment in residential improvements and fewer ‘For Sale’ signs.
To better understand how the cost of buying new impacts homeowners today, researchers at Inspired Closets, a company specializing in custom home storage solutions, looked at the numbers behind new construction prices.
The study identifies the most expensive and affordable cities for buying new — both in absolute terms and relative to current owners’ costs. Learn more about the methodology at the end.
First are the cities with the most expensive new construction homes.
10. Sacramento, CA
- Median price (new construction): $679,667
- Median price (existing homes): $619,808
- Median monthly mortgage payment (new construction): $3,545
- Median monthly mortgage payment (existing homes): $2,098
- New construction price gap: +$59,859
- New construction payment gap: +$1,446
- New construction price gap %: +9.7%
- New construction payment gap %: +68.9%
9. Washington, DC
- Median price (new construction): $707,389
- Median price (existing homes): $608,709
- Median monthly mortgage payment (new construction): $3,689
- Median monthly mortgage payment (existing homes): $2,308
- New construction price gap: +$98,679
- New construction payment gap: +$1,381
- New construction price gap %: +16.2%
- New construction payment gap %: +59.8%
8. Seattle, WA
- Median price (new construction): $863,822
- Median price (existing homes): $755,103
- Median monthly mortgage payment (new construction): $4,505
- Median monthly mortgage payment (existing homes): $2,413
- New construction price gap: +$108,719
- New construction payment gap: +$2,092
- New construction price gap %: +14.4%
- New construction payment gap %: +86.7%
7. Miami, FL
- Median price (new construction): $1,068,983
- Median price (existing homes): $533,331
- Median monthly mortgage payment (new construction): $5,575
- Median monthly mortgage payment (existing homes): $2,098
- New construction price gap: +$535,652
- New construction payment gap: +$3,477
- New construction price gap %: +100.4%
- New construction payment gap %: +165.7%
6. New York, NY
- Median price (new construction): $1,139,833
- Median price (existing homes): $663,739
- Median monthly mortgage payment (new construction): $5,945
- Median monthly mortgage payment (existing homes): $2,623
- New construction price gap: +$476,094
- New construction payment gap: +$3,322
- New construction price gap %: +71.7%
- New construction payment gap %: +126.6%
5. San Diego, CA
- Median price (new construction): $1,198,014
- Median price (existing homes): $932,788
- Median monthly mortgage payment (new construction): $6,248
- Median monthly mortgage payment (existing homes): $2,518
- New construction price gap: +$265,226
- New construction payment gap: +$3,730
- New construction price gap %: +28.4%
- New construction payment gap %: +148.1%
4. Boston, MA
- Median price (new construction): $1,355,387
- Median price (existing homes): $693,290
- Median monthly mortgage payment (new construction): $7,069
- Median monthly mortgage payment (existing homes): $2,308
- New construction price gap: +$662,097
- New construction payment gap: +$4,761
- New construction price gap %: +95.5%
- New construction payment gap %: +206.2%
3. San Jose, CA
- Median price (new construction): $1,501,667
- Median price (existing homes): $1,488,758
- Median monthly mortgage payment (new construction): $7,832
- Median monthly mortgage payment (existing homes): $2,938
- New construction price gap: +$12,908
- New construction payment gap: +$4,894
- New construction price gap %: +0.9%
- New construction payment gap %: +166.6%
2. San Francisco, CA
- Median price (new construction): $1,571,667
- Median price (existing homes): $1,043,602
- Median monthly mortgage payment (new construction): $8,197
- Median monthly mortgage payment (existing homes): $2,833
- New construction price gap: +$528,065
- New construction payment gap: +$5,364
- New construction price gap %: +50.6%
- New construction payment gap %: +189.3%
1. Los Angeles, CA
- Median price (new construction): $1,770,417
- Median price (existing homes): $930,481
- Median monthly mortgage payment (new construction): $9,233
- Median monthly mortgage payment (existing homes): $2,413
- New construction price gap: +$839,936
- New construction payment gap: +$6,820
- New construction price gap %: +90.3%
- New construction payment gap %: +282.6%
The 10 Least Expensive Cities for New Construction Homes
The following are the metros where homebuyers can find the most affordable new homes, along with their average price.
- Augusta, GA — $324,134
- Rocky Mount, NC — $323,000
- Springfield, MO — $321,483
- El Paso, TX — $309,499
- Columbia, SC — $300,698
- Spartanburg, SC — $292,196
- San Antonio, TX — $285,626
- Ocala, FL — $284,748
- Homosassa Springs, FL — $272,383
- McAllen, TX — $260,467
Methodology
This study analyzed the cost of new construction single-family homes across metropolitan areas in the United States using data from Zillow and the U.S. Census Bureau’s American Community Survey (ACS).
The primary goal was to compare the prices and mortgage payments for new construction single-family homes with those of existing single-family homes. To estimate the current price of new construction homes, researchers used Q1 2025 median sale price data for new construction single-family homes sourced from Zillow.
These figures were then compared to data from the 2023 ACS — the latest available — which asked single-family homeowners with mortgages to estimate how much their home would sell for if it were listed. Since the ACS data reflects 2023 valuations, researchers adjusted these figures to 2025 levels using metro-specific home price appreciation data.
Researchers also estimated monthly mortgage payments for new construction homes. These hypothetical payments assumed a 30-year fixed-rate mortgage at 6.8% interest with a 20% down payment.
These estimates were then compared to the actual monthly mortgage payments reported by existing single-family homeowners in the ACS. Reported payments were adjusted to 2025 dollars using CPI data to ensure comparability.
The final analysis includes both the absolute dollar differences and percentage gaps between new construction and existing homes, measured across home prices and monthly mortgage payments. Only metropolitan statistical areas with complete data from both sources were included in the final dataset.
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