Chart du jour: The new construction premium
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Prospective homebuyers in Cleveland can save hundreds of thousands of dollars if they purchase an existing home instead of a new build.
State of play: Cleveland is one of the U.S. cities with the biggest premium on newly constructed homes.
The big picture: The trend is similar, though less exaggerated, in other Midwest and Northeast cities, where the bulk of new construction is high-end and is being built less frequently, according to a new quarterly report from Realtor.com.
By the numbers: The median list price of a new build in the U.S. was $449,967 last quarter. That's compared to $395,800 for an existing home.
Between the lines: That means it's more expensive in Cleveland to buy a new home than in other cities, but it's cheaper here to buy an existing home.
What they're saying: "As with everything in real estate, location is key," Realtor.com's Joel Berner tells Axios.
- For example, new builds are cheaper than existing homes in Austin, Texas, where builders have cranked out more (relatively) affordable inventory.