You know that moment when you’re mid-scroll on Zillow and your friend says, “Oh, new construction is nice, but it’s way more expensive.” Hmm… not sure we're buying that.
Let’s unpack that myth, shall we? Because “way more expensive” is doing a lot of heavy lifting. It’s like saying a $5 coffee is too much—until you realize you just spent $300 at Target without blinking. Value is about more than sticker shock. And when it comes to new construction vs. existing homes, the math doesn’t just tell a different story—it shouts it from the rooftop (a brand-new, warrantied rooftop, mind you).
The Price Tag vs. the Long Game
Yes, it’s true—on paper, a new home may appear more expensive upfront. According to the National Association of Realtors, the median price of a newly built home in early 2024 was around $420,000, while existing homes sat closer to $380,000. So sure, if you’re judging solely by list price, older homes might look like a bargain—but that’s a national snapshot. In South Dakota—and especially in fast-growing areas like Sioux Falls—new construction often delivers greater long-term value for just a bit more upfront. And in some cases, new homes can cost less overall, even without needing to put extra money back into them.
But here’s the kicker: existing homes often come with baggage, and we’re not just talking about wallpaper choices from 1993. Between outdated HVAC systems, roof repairs, mystery moisture issues, and appliances on their last leg, the average buyer of an older home ends up spending $6,000–$15,000 in repairs and updates within the first year. Suddenly, that “cheaper” home isn’t looking so cheap.
New construction, like the homes built by Empire Homes, comes with warranties, energy-efficient systems, and zero weird smells in the basement. No immediate fixes. No surprise weekend trips to Home Depot—because, let’s be honest, wandering the power tool aisle is half the fun—new homes just come with fewer unexpected issues that eat up your Saturday and your savings.
Energy Efficiency = Sneaky Savings
Older homes may have charm, but that charm is expensive to heat. Today’s new construction homes are built to meet modern energy codes, meaning better insulation, tighter windows, and HVAC systems that don’t sound like they’re gasping for air every time they kick on.
Energy Star estimates that buyers of new energy-efficient homes can save up to 30% on utility bills compared to older homes. Over five years, that can add up to several thousand dollars. You know what’s fun to do with a few thousand dollars? Literally anything other than paying your electric bill.
Appraisal Gaps
This part no one likes to talk about: the bidding war. If you’ve tried buying an existing home in the last couple of years, you know how it goes. You walk in, fall in love, and boom—12 offers later, you're up against buyers who had their realtor pass along a tearjerker of a note, right alongside their offer, about how the creaky floors remind them of Grandma’s house.
That’s not just stressful, it’s financially risky. Many buyers are forced to bid over asking, which can lead to appraisal gaps. Translation: you offer $385K, the home appraises at $360K, and now you’re scrambling to come up with an extra $25K.
At Empire Homes, we’re all about offering affordable, quality new homes that are built to last. Plus, with our 3% homebuyer credit, you’re getting even more value with every purchase—no need for emotional appeals about nostalgic creaky floors to seal the deal.
And one of the biggest perks? You get to add your touch. From cabinetry and countertops to flooring and fixtures, Empire’s new homes come with customizable finishes that let you shape the space to match your style—no renovations (or retro wallpaper surprises) required.
Maintenance
We don’t talk enough about the emotional cost of spending every weekend fixing something. New builds mean no dripping faucets, no paint touch-ups from three owners ago, and no “What’s that smell?” moments.
Not only do you save time, but HomeAdvisor reports that routine home maintenance costs average $3,000–$5,000/year on older properties. That’s not including big-ticket items like a furnace or roof replacement. If you’d rather put that money toward vacations, hobbies, or literally anything else, new construction is looking pretty dreamy.
In Closing
So, is new construction really more expensive? Not when you add it up. Not when you factor in the repairs you won’t need, the energy you won’t waste, and the weekends you’ll get to enjoy. Not when you consider that your home should work for your life—not the other way around.
At Empire Homes, we’re all about smart investments—new construction that feels solid, looks fresh and doesn’t come with a to-do list. From whisper-quiet HVAC systems to finishes that hold up, we build homes that let you skip the fixer-upper phase completely.