The August 2025 Forbes article, “Here’s Why Old Homes Suddenly Cost More Than New Ones” features Veros Real Estate Solutions’ Chief Economist and SVP of Analytics, Eric Fox and Senior Research Economist, Reena Agrawal! In the piece, they discuss the strange trend currently encapsulating the housing market in the summer of 2025. Newer homes are selling for less money than existing homes.
Key takeaways from the article:
- Many builders are offering incentives, allowing them to move homes at a quicker rate. This includes interest rate buy-downs, assistance with closing costs, and anything that will help attract buyers.
- The lock-in effect continues to persist, with current homeowners being hesitant to sell given their current low mortgage rates. Ultimately, this results in a tight supply of homes.
- In an effort to make homes more affordable, builders are constructing smaller sized homes. This includes condos, townhouses, and simply smaller homes.
- The market is currently tilted in favor of national builders. This is because they have more flexibility when it comes to offering incentives and attracting more buyers.
Fox and Agrawal also weigh in on how long this unusual pricing dynamic might last—months, years, or longer.
Read the Forbes article here: Why Old Homes Now Outprice New Ones in 2025
Thank you, Forbes, for the opportunity to share Veros economists’ insights and bring this important conversation to a wider audience.
