Houston housing market tips to resale as new home prices skyrocket

​​​HOUSTON – Houstonians have always paid a premium for a new home versus a “resale” home.

Historically, buyers spent about 15 percent more on a newly constructed home over an existing resale home, but the price gap between the new and existing home market is growing.

In Bridgeland — a Cypress master-planned community — the difference between the new home and resale market was 13 percent in 2011. Today, a new home costs on average 22 percent more than a resale home of comparable quality and size.

Nearby in the Kuykendahl and FM 2920 area, the price difference between the new and resale housing markets was just 5 percent in 2011. Today, that difference has jumped to 23 percent.

This new home premium is growing as construction costs have ballooned to record levels.

Land has become more expensive during the energy boom, causing the average price of new homes to skyrocket, far beyond the price increases seen in the existing home market.

This widening premium gap is troubling because home builders want to ensure that new homes prices remain competitive compared to the resale market.