Imagine a world where your grandma’s creaky old house is worth more than a shiny new mansion with a pool! That’s what’s happening in the U.S. housing market right now. It’s like old houses are suddenly the cool kids at school, and new houses are trying desperately to keep up with the Joneses. Let’s break down the reasons why old homes are now pricier than new ones!
Here are Five Fast Facts on why old homes cost more than new ones right now:
- 🤯 Price Tag Flip - In June 2025, old homes sold for a median of $441,500, while new homes were an unbelievable 9% lower at $401,800! That’s like millions of shoppers choosing a dusty ol' Nokia over a brand-new iPhone! This price switch is super rare, and has only happened 22 times in the 690 months since 1968…but seven of those were in 2025.
- 🧓 Grandpa Says No Stairs - The median buyer is now 56 years old. Many at this age would rather have (older) single-story houses with a backyard than a new three-story stairmaster special.
- 🙅🏼 Clinging Hard - People with old homes don’t want to sell because they’ve got super-low mortgage rates from years ago. Selling means getting a new loan at today’s higher rates, which is like trading a $1 burger for a $10 salad. Hard pass.
- 🤏 Small Is The New Big - New homes are getting tinier to make them cheaper - an average of 400 sq. ft. smaller in the last ten years! So, while builders are trying to sell you an expensive new shoebox, old homes in cool neighborhoods are the VIPs of the market.
- 🐳 Big Builders Rule - The top ten builders nationally sold almost 45% of all new homes in 2024, up from 31.5% in 2018 and 8.7% in 1989. These whales have more cash to offer discounts and they can play the volume game, so they’re selling new homes cheaper than small builders can. It’s like a big chain store undercutting the little mom-and-pop shop, but with houses.
🔥Bottom line: As crazy as it sounds, old homes are the rock stars of real estate in 2025! With builders slashing prices, homeowners holding onto sweet loan deals, and new homes shrinking like a cheap T-shirt in the wash, old houses are winning the price game. Who knew that creaky floors and retro floral wallpaper could be worth more than a fancy new build? Next time you pass an old house, give it a wink - it’s living its best life.
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