Do New Construction Homes Appreciate Faster Than Resale in Utah?
There may be a little more appreciation early on with new construction than with a comparable resale home. But all else equal, over a longer horizon – say ten to fifteen years – a resale home and a new construction home in the same area generally appreciate in a similar way. The exception is when the new construction is in a developing area or a very large new-home community where the builder is consistently raising base prices; that builder pricing pressure can add appreciation on top of the market. Worth noting, though: resale homes in that same area also rise in value over time precisely because of the surrounding new construction going up in price. A rising tide lifts both. So new construction is not a reliable way to beat the market on appreciation – buy it for the other reasons (a modern floor plan, no deferred maintenance, the payment a builder incentive makes possible) and treat appreciation as roughly in line with the neighborhood.
Related: New Construction vs. Resale in Utah · New Construction vs. Resale for a First-Time Buyer in Utah · Smart Buyer Strategy for Utah Home Buyers