If you’re shopping for a home in Pennsylvania, you may have noticed a big difference between the cost of new construction homes and existing homes. According to a recent analysis by LendingTree, Pennsylvania is one of only two states in the nation where newly built homes cost more than double the price of existing properties (Philadelphia Inquirer, August 18, 2025).

The Numbers: New vs. Existing Homes in PA

• Median price of an existing home in PA: $297,831

• Median price of a newly constructed home in PA: $659,468

• Percentage difference: 121%

For comparison, the nationwide average gap between new and existing homes is about 38% (roughly $147,000). Connecticut is the only state with a higher difference than Pennsylvania, coming in at 126%.

Why Are New Homes So Expensive in Pennsylvania?

Several factors drive up the cost of new construction in Pennsylvania:

1. Buyer demand – Many buyers are willing to pay a premium for a brand-new home.

2. Land availability – Limited land supply makes it harder (and more expensive) for builders to develop.

3. Labor shortages – A lack of skilled trade workers increases construction costs.

4. Regulations – Federal, state, and local regulations account for nearly 30% of the cost of new single-family homes in PA, according to the Pennsylvania Builders Association.

What It Means for Homebuyers

To afford a median-priced new home in Pennsylvania, households need an income of around $210,643, compared to $95,131 for a median-priced existing home. That’s a significant difference and one that can impact your buying decision.

For many families, choosing between new construction and existing homes comes down to lifestyle preferences, budget, and long-term plans. While new homes often offer modern layouts, energy efficiency, and lower maintenance, existing homes tend to provide more affordability and established neighborhoods.

Final Thoughts

If you’re navigating the Pennsylvania housing market, understanding these cost differences is key. Whether you’re drawn to the charm of an existing home or the upgrades of new construction, having the right real estate guidance can make all the difference.

Thinking about buying or selling in Pennsylvania? The McKnight Team is here to help you explore your options and find the home that fits your needs—and your budget.

Source: Philadelphia Inquirer; 8/18/2025