New Construction Premium — How Much More Do 2020+ Homes Cost?
State-level analysis comparing average sale prices of post-2020 new construction vs. 1980–1999 homes. Identify markets where buyers pay the largest new-build premium.
Top 20 states by new-build premium
State ranking — new construction premium
| # | State | Avg new (2020+) | Avg 1980–1999 | Premium % | New sample | Old sample |
|---|---|---|---|---|---|---|
| 1 | Maryland (MD) | $1.07M | $496.7K | +115.0% | 3,096 | 5,002 |
| 2 | New York (NY) | $1.52M | $731.1K | +107.9% | 4,573 | 9,009 |
| 3 | New Jersey (NJ) | $1.15M | $586.5K | +95.3% | 3,348 | 8,691 |
| 4 | Illinois (IL) | $709.1K | $400.6K | +77.0% | 3,810 | 7,322 |
| 5 | Pennsylvania (PA) | $674.3K | $410.2K | +64.4% | 3,574 | 6,393 |
| 6 | Nevada (NV) | $824.2K | $519.4K | +58.7% | 1,292 | 3,201 |
| 7 | Arizona (AZ) | $866.2K | $547.1K | +58.3% | 8,782 | 11,065 |
| 8 | California (CA) | $1.44M | $911.1K | +58.1% | 8,129 | 26,633 |
| 9 | Connecticut (CT) | $950.1K | $607.5K | +56.4% | 1,345 | 2,469 |
| 10 | Colorado (CO) | $1.29M | $830.5K | +55.4% | 7,641 | 6,897 |
| 11 | Alabama (AL) | $652.4K | $437.6K | +49.1% | 5,446 | 4,877 |
| 12 | Arkansas (AR) | $419.3K | $282.2K | +48.6% | 6,125 | 5,477 |
| 13 | Minnesota (MN) | $613.5K | $417.9K | +46.8% | 5,987 | 5,037 |
| 14 | Massachusetts (MA) | $1.13M | $795.3K | +42.5% | 2,485 | 2,991 |
| 15 | Oklahoma (OK) | $416.9K | $294.3K | +41.6% | 4,344 | 3,001 |
| 16 | Tennessee (TN) | $620.8K | $447.5K | +38.7% | 9,158 | 6,885 |
| 17 | Virginia (VA) | $689K | $498.5K | +38.2% | 6,801 | 7,350 |
| 18 | North Dakota (ND) | $453.7K | $335K | +35.4% | 901 | 401 |
| 19 | Delaware (DE) | $617.8K | $456.6K | +35.3% | 1,141 | 912 |
| 20 | Rhode Island (RI) | $818.7K | $608.1K | +34.6% | 442 | 594 |
| 21 | New Hampshire (NH) | $687.5K | $511.7K | +34.4% | 716 | 1,004 |
| 22 | Florida (FL) | $777.9K | $589.3K | +32.0% | 35,167 | 39,785 |
| 23 | Iowa (IA) | $441.8K | $335.1K | +31.9% | 4,962 | 1,662 |
| 24 | Nebraska (NE) | $481.7K | $368.6K | +30.7% | 2,658 | 701 |
| 25 | Vermont (VT) | $618.5K | $473.8K | +30.6% | 113 | 604 |
| 26 | West Virginia (WV) | $357.2K | $278.2K | +28.4% | 661 | 1,062 |
| 27 | Oregon (OR) | $705K | $552.8K | +27.5% | 3,109 | 3,680 |
| 28 | Kentucky (KY) | $393.1K | $314.3K | +25.1% | 3,041 | 3,546 |
| 29 | Ohio (OH) | $447.3K | $367.9K | +21.6% | 4,154 | 5,883 |
| 30 | North Carolina (NC) | $542.5K | $452.1K | +20.0% | 20,449 | 11,016 |
| 31 | Maine (ME) | $495.4K | $414.6K | +19.5% | 207 | 401 |
| 32 | Georgia (GA) | $522.9K | $442.5K | +18.2% | 15,135 | 13,918 |
| 33 | Indiana (IN) | $406.7K | $344.6K | +18.0% | 3,603 | 3,399 |
| 34 | South Carolina (SC) | $514.6K | $438.7K | +17.3% | 9,584 | 5,965 |
| 35 | Washington (WA) | $817.4K | $699.4K | +16.9% | 5,995 | 6,307 |
| 36 | Wisconsin (WI) | $479.2K | $411.4K | +16.5% | 3,897 | 3,551 |
| 37 | Hawaii (HI) | $1.15M | $990.3K | +16.4% | 333 | 997 |
| 38 | Michigan (MI) | $457.8K | $399.1K | +14.7% | 4,362 | 5,759 |
| 39 | South Dakota (SD) | $475.8K | $417.1K | +14.1% | 291 | 211 |
| 40 | District of Columbia (DC) | $943.6K | $867.6K | +8.8% | 232 | 64 |
Why investors care about the new-build premium
A state where new builds command a 50%+ premium over 1990s stock is a state where construction makes economic sense. A 10% premium suggests buyers don't value newness much — old-stock value-add plays usually win there.
High premiums create an arbitrage: if buyers pay 30% more for "new," a deep gut-renovation of 1990s stock can capture much of that gap at a fraction of new-build cost. Look at the premium % column with that lens.
New construction is often larger, on bigger lots, and in newer subdivisions — so part of the premium is for size and location, not just age. Treat this as directional, not a clean apples-to-apples comparison. Source: public record. Data: 2024 sales only.