Whether it’s cars, electronics, household appliances or clothing, a general maxim holds true: New stuff costs more than used stuff.

Home prices also follow this rule, but the gap between new and existing home prices has narrowed considerably, according to the National Association of Home Builders (NAHB).

NAHB found that during the first quarter of 2025, the median sales price of a new home was just $14,600 more than that of an existing home. The average difference over the last five years was $26,700, while from 2010 to 2019 it averaged $66,000, according to a NAHB analysis of U.S. Census Bureau and National Association of Realtors data.

The association cites several reasons for this shrinking price difference.

For one, nationwide inventory constraints are pushing up prices of existing homes, as many homeowners who locked in low mortgage rates during the pandemic-era housing boom are reluctant to move and incur a higher rate on their new home.

Also, home builders have been adapting to affordability constraints affecting prospective homebuyers by building smaller homes and offering incentives that have driven new-home prices down.

The median price for a new single-family home sold during the first quarter of 2025 was $416,900, per the NAHB report, compared to $402,300 for existing homes. According to a recent survey conducted on behalf of NAHB, 82% of U.S. residents said that housing affordability is a problem in the area they live in.