Jeff Ostrowski, Bankrate.com
The reality is that the home is very affordable and pushing stressed buyers to consider fixer uppers. Older homes may offer bargains in advance, but there is a catch. Aging property saddle owners have maintenance costs that will narrow down their budgets and test their patience. Buying an old one that requires work isn’t necessarily the ideal solution, as home buyers need a household income of nearly $117,000 to buy a home.
How old is your American home?
The American housing stock is grey. According to the US Census Bureau, from 2005 to 2023, the median age of owner-occupied homes rose to 41 in 2023. Put another way, typical Americans now live in houses built before the early 1980s.
The house is getting longer in the teeth as the builders aren’t adding new homes at the pace they once did.
“We went below homes from 2013 until Covid,” says Robert Dietz, chief economist at the National Association of Home Builders.
The slow pace of home construction following the Great Recession has intensified the housing boom in recent years. ECON 101: Prices rise when demand is supplied. That’s exactly what’s happening in the US housing market. This is because the population of potential home buyers is increasingly seeking a supply of homes.
According to Bankrate’s 2025 down payment survey, 81% of aspiring homeowners say down payments and closing costs will result in a “very important” or “somewhat important” obstacle to owning a home one day. The survey found that 18% of buyers view fixer uppers as a way to infiltrate affordable markets.
Should I buy a new one?
A third of U.S. home inventory is new construction, while the other two thirds for sale are existing homes, says Dietz. The condition of these existing homes can vary significantly from completely renovated locations that do not require work with shag carpets, linoleum floors, musty basements, and heating and air conditioning units failures.
Generally, the cost of a new location is more upfront, but older homes that require work may require continuous maintenance.
“There’s nothing like a free lunch,” says Dietz. “A new home will have a premium for new home prices, which makes it more expensive, but lower operating costs.”
New vs. Old House: Pros and Cons
Purchase price
In most cases, new homes are more expensive than existing homes, at least in terms of acquisition costs. The higher prices stem from inflation, new home construction regulations, and a combination of more expensive materials and finishes.
Most mortgages are based on the value of the home when you buy it. The amount of the loan is not intended for an upgrade. However, you may be able to fund repairs as part of your mortgage by obtaining a mortgage or a Federal Housing Administration 203(k) loan.
Home Size and Features
Home sizes have grown over the years and lifestyles have evolved. The typical size of a new home built in 2023 was 2,233 square feet, according to the US Census Bureau. In 1982, that figure was just 1,520 square feet. Additionally, older homes often have features that have fallen out of favor, such as formal dining rooms.
Lot size
No, it’s not your imagination. A new home (and even a large and expensive house) is built on small, small lots. As of 2023, the median lot size for new detached homes in the United States was 8,877 square feet, or a fifth of an acre, the Census Bureau reports. In 2009, the number was 10,994 square feet, or a quarter acre.
Home maintenance costs
In addition to budgeting for monthly mortgage payments, you will need to have money and time to deal with repairs and renovations. Usually about 2% of the annual home purchase price. In that sense, Edge goes to his new home. They tend to be more energy efficient and should be years old before you have to get into contact with major systems like roofs and heating and air conditioning. Older homes will likely require more expenses for maintenance.
Commuting time
Housing developments are partly slowing down due to a lack of land. As a result, many new developments have been rising in the suburbs and in study abroad. If you work from home, it’s great – but if you value short commutes, you may have more luck with your existing home.
©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.
