When buying a home, you’ll need to choose between purchasing a newly built home or an existing one. New construction homes now make up almost one-third of single-family homes on the market in the United States.
Try This: I’m a Real Estate Agent: 5 Places I’d Buy a Vacation Home If I Had $500,000
Learn More: 5 Unusual Ways To Make Extra Money (That Actually Work)
However, buying a new building may be a better investment in some cities instead of others. Let’s explore:
Wealthy people know the best money secrets. Learn how to copy them.
There are new construction homes for sale in nearly any city. However, some may be more difficult to build or more expensive than others.
To rank the best cities to buy new construction homes, we looked at factors like the percentage of newly built homes currently for sale, median home sale price, recent trends in the market, and cost of living. Here are five of the best cities to buy new construction homes.
A large percentage of housing for sale in Tulsa is newly built homes. New homes made up 33% of single-family homes for sale in Tulsa in Q2 of 2023, compared to 20% at the same time a year earlier. Tulsa saw the most significant jump of most other metros when compared in a Redfin study.
Trending Now: 5 Types of Homes That Will Plummet in Value in 2024
Plus, Tulsa is affordable. The median sale price of a home in Tulsa is $240,250, and the cost of living is 11% lower than the national average. Tulsa is also growing. Tulsa’s housing market experienced a 9% growth year over year.
This indicates a good time to buy a new construction home in Tulsa. New construction homes are popular, selling well, improving, and affordable.
A greater percentage of single-family homes for sale in Richmond are newly built homes. Over 35% of single-family homes in Q2 2023 were newly built, up from 23% in Q2 2022.
Even though Richmond is slightly more expensive, it is growing quickly. The median sale price of a home in Richmond is $387,500, and the cost of living is 3% lower than the national average. Richmond’s housing market experienced a 12.3% growth year over year.
Although Austin has had a recent drop in new construction homes (30.4% down from 34.5%), the percentage is still high. Home prices have come back a little, with the median sale price of a home in Austin at $570,000. The cost of living in Austin is 1% higher than the national average, but they have the second-highest job market in the country.
“Аustin is experiencing аn unpreсedented growth in tеch sectоrs, with companies like Apple, Teslа, аnd Orаcle eithеr estаblishing оr expаnding thеir oрerаtions,” says Humberto Marquez, licensed real estate broker with Awning.com.
Marquez added, “Тhis hаs lеd tо аn influх оf high-wаge еаrnеrs mоving tо Аustin. Аs а result, demаnd fоr hоusing is skyrockеting, аnd with limited inventоry, nеw cоnstructiоns bесome а hot сommodity.”
Elgin may be less well-known than the first three cities, but it offers a solid market for buying a new construction home. Elgin is located about one hour outside of Chicago.
In Q2 2023, 25% of single-family homes were new construction homes in Elgin, compared to 15% one year before. The median sale price of a home in Elgin is $297,500. Elgin’s housing market experienced a 1.7% growth year over year, less drastic than Richmond or Tulsa, but still a steady increase.
So far in 2023, new construction homes have made up more than half (52%) of single-family homes for sale in El Paso. Newly built homes are in demand, as is the overall housing market. Home prices were up 1.2% in Q2 2023, compared to the same time last year.
The median sale price of a home in El Paso is $240,000, which is the lowest on this list. Plus, the cost of living is 11% lower than the national average.
Price is obviously a significant factor when deciding where to build a home. If you can’t afford to build the actual house, that would be limiting. But besides price, there are several other factors to consider, including cost of living, jobs, education and crime. Let’s take a look.
Cost of living is an essential financial factor when deciding where to live. Cost of living includes groceries, child care, dining, entertainment, transportation, gas and more. Generally, places with a higher cost of living come with higher salaries, but not always. Plus, this may not apply to you if you have a remote job, are unemployed, retired, or self-employed. Be sure to do your research and consider your financial situation.
If you plan to work remotely, the local job market may be a minor factor when deciding where to build your home. But if you plan on getting a new job, you should research the local job market to ensure you can find work that pays enough.
If you have kids or are planning on having kids, the local education situation may be a factor to consider. Websites like Great Schools are available to understand how schools rank nationwide. You could also talk with parents who already live in the neighborhood to find out their thoughts on the school system.
If you’re considering sending your kids to private school, you can also research those options. Find out their wait lists, admissions process and tuition.
It’s essential that you feel safe in your new home. Research the crime rates in the area you are considering building a house. Crime rates alone don’t determine safety but are one piece to look at. Crime rates can also impact external costs, like insurance premiums.
Deciding where to buy a home and what home to buy is a decision that will differ based on your priorities, budget, circumstances and other factors.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Buy Property in These 10 Cities To Be Rich in 10 Years
