Map Shows Cities Where Homeowners Are Paying Huge Premiums for New Builds
Summary
A study by Realtor.com shows that newly built homes in U.S. city centers are rare and cost much more than existing homes there. In some cities like Miami, the price difference can be more than four times higher for new urban homes compared to older ones.Key Facts
- New homes in urban areas are priced about 78% higher than existing urban homes nationwide.
- Only about 10% of new homes for sale are in city ZIP codes; most new homes (around 80%) are in suburbs.
- Miami metro area has the biggest price gap, with new urban homes costing 462% more than existing ones.
- Other cities with high new-home price premiums include Tampa, Orlando, St. Louis, Detroit, Chicago, Cincinnati, New York, and Raleigh.
- The shortage of new homes in cities is due to high demand and limited supply.
- Stuart Miller, CEO of a major home builder, says years of underbuilding have created a housing shortage.
- Some areas, like Cape Coral-Fort Myers, even have new homes priced lower than existing ones.
- Overall, the data highlights a need for more new homes in urban locations to meet demand.
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