New Home Sales: Why More Buyers in the Triangle Area Are Choosing New Builds Over Resales

In recent years, the Triangle area has experienced a significant shift in homebuyer preferences. More buyers are choosing newly constructed homes over resale properties, a trend that has steadily increased over the past decade. Several factors, including inventory shortages, demographic changes, and evolving market conditions, have contributed to this shift.

Steady Growth in New Home Sales

The percentage of new home sales in the Triangle has shown a steady increase over the last ten years, demonstrating buyers’ growing preference for newly built properties. The chart below illustrates this trend:

Over the past decade, the share of new home sales has increased from 20.47% in 2015 to over 31% in 2024. The most notable jump occurred between 2021 and 2023, when new home sales rose from 25.35% to 32.24%, reflecting heightened demand.

Factors Driving the Preference for New Construction

1. Inventory Shortages in the Resale Market

A major reason for the increasing preference for new homes is the ongoing shortage of resale inventory. Many current homeowners are hesitant to sell, especially those who secured historically low mortgage rates in previous years. This has resulted in fewer resale homes available, pushing buyers toward newly built properties.

Even though total housing inventory has seen slight improvements, demand continues to outpace supply, particularly in highly sought-after areas like Apex, Holly Springs, and eastern Wake County.

2. Modern Features and Energy Efficiency

Homebuyers today are prioritizing energy efficiency, smart home technology, and open floor plans—features that are more common in new constructions. Many of the new developments in the Triangle offer these amenities, making them more appealing than older homes, which may require updates and renovations.

Additionally, new homes generally have lower maintenance costs, making them an attractive long-term investment for buyers looking to avoid costly repairs.

3. Competitive Mortgage Rates and Builder Incentives

Mortgage rates have stabilized between 6.75% and 7.5% in 2024, providing buyers with more predictability in their purchasing decisions. Although rates are higher than the record lows of 2020-2021, builders have responded by offering incentives such as mortgage rate buydowns, closing cost assistance, and upgraded home features to attract buyers.

These incentives make new homes more financially viable compared to resale properties, where buyers may face bidding wars and as-is conditions.

4. Growth of Suburban Developments

The Triangle's rapid economic and population growth has spurred a boom in suburban housing developments. Areas such as Fuquay-Varina, Knightdale, and Clayton have seen significant growth in new home communities, offering a mix of affordability and accessibility to Raleigh and Durham.

As more employers establish offices in the Triangle—particularly in tech, healthcare, and research industries—the demand for new housing in these areas is expected to remain strong.

Looking Ahead: Will New Home Sales Continue to Rise?

Given the current market trends, the percentage of new home sales in the Triangle is expected to remain high. With increasing demand, ongoing development projects, and continued population growth, the shift toward new constructions will likely persist.

However, challenges such as rising construction costs, interest rate fluctuations, and potential economic downturns could impact future growth. Even so, with builders adapting to market conditions and offering competitive pricing, new homes are set to remain a dominant force in the Triangle’s real estate market.

Conclusion

The last decade has seen a clear shift in the Triangle’s housing market, with new home sales rising from 20.47% in 2015 to over 31% in 2024. Factors such as limited resale inventory, evolving buyer preferences, and suburban expansion have fueled this trend. As the region continues to grow, new construction homes are expected to remain a preferred choice for many homebuyers in the years to come.

^{_{Data Analysis by Sylvain Dufour - Data engineering and visualization by Vanessa Peeters}}