New Homes More Affordable Than Older Ones in Key Southern Markets

Southern U.S. cities are currently presenting the most attractive markets for new home buyers, according to a new report from Realtor.com. Eight of the top ten metro areas with new home availability are located in the Southern U.S., with Charleston, South Carolina, leading the list.

The report analyzed pricing differences between new and existing homes, the share of new constructions in total listings, and their time on the market. It also considered climate-related risks for new versus older properties. In Charleston, South Carolina, buyers are paying an average of 12% less for a new house compared to an existing one, with median prices at $443,273 for new builds and $504,832 for pre-owned homes.

"New construction is one of the most important ways to expand the supply of homes available to buyers, but the opportunity is not evenly distributed across the country," said Joel Berner, Senior Economist at Realtor.com. "This year's ranking shows that Southern metros are not only building more homes; they are also creating conditions where buyers can find newly built homes at prices that compete with, and in some cases beat, existing homes."

The popularity of new home construction in many Southern states, including North Carolina, South Carolina, and Tennessee, is attributed to local building regulations and more affordable land. Many of these high-growth areas are also university towns, attracting residents and driving local economic activity.