If you’re house hunting in Pennsylvania, you may have noticed that new construction homes come with a much bigger price tag than existing homes. In fact, Pennsylvania is one of only two states where new homes cost more than double what existing homes are valued at, according to a recent analysis from LendingTree.

Here’s what the numbers look like:

• Median value of existing homes in PA: $297,831

• Median value of new construction homes in PA: $659,468

• Percentage difference: 121%

To put it into perspective, the national average difference between new and existing homes is just 38% (around $147,000). Connecticut is the only state with a larger gap than Pennsylvania, with a 126% difference.

Why Are New Homes in Pennsylvania So Expensive?

Several factors drive up the cost of new construction real estate in PA:

• High buyer demand – Many buyers are willing to pay a premium for modern layouts, energy efficiency, and move-in-ready condition.

• Limited land availability – In desirable areas, open land for new development is scarce, driving up costs.

• Labor shortages – A lack of skilled trade workers adds delays and expenses.

• Regulations – Federal, state, and local building regulations add time and money to every project. In fact, a report commissioned by the Pennsylvania Builders Association found that regulations accounted for nearly 30% of the cost of a new single-family home in 2023.

What This Means for Buyers

The income needed to afford these homes highlights the affordability gap:

• To buy a median-priced existing home in Pennsylvania, households need an income of about $95,131.

• To buy a median-priced new home, that number jumps to $210,643.

For many buyers, this means existing homes remain the most practical option, though those with the budget for new construction may benefit from fewer repairs and modern amenities.

Bottom Line

The Pennsylvania housing market shows a clear divide between new construction and existing homes, both in terms of price and affordability. Whether you’re exploring brand-new builds or charming older homes, it’s important to understand the factors driving costs so you can make the best decision for your budget.

If you’re ready to start your home search — whether for a new home in Pennsylvania or an existing one — The McKnight Team is here to help you navigate the process and find the right fit.

📌 Source: Philadelphia Inquirer | August 18, 2025