New Homes Save Buyers $25,000 Over Ten Years, Offsetting Higher Upfront Costs

Rhea-AI Summary

Realtor.com (NYSE:NWS) research finds buyers of newly built homes save an average of $25,335 over 10 years versus 20-year-old homes, mainly from lower utilities and fewer major repairs.

New England leads savings, and in 16 metros decade-long savings can fully offset new-construction price premiums. Realtor.com is also launching a cost-of-ownership hub showing personalized 10-year savings on new construction listings.

News Market Reaction – NWS

-1.96%

-1.96% Session close to close

In the May 14 session, NWS declined 1.96%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement underscores Realtor.com®’s focus on differentiated housing analytics, quantifying ...

Analysis

This announcement underscores Realtor.com®’s focus on differentiated housing analytics, quantifying $25,335 in average 10‑year savings for new homes and highlighting strong advantages in New England. The introduction of interactive total cost of ownership tools complements earlier Realtor.com® research on new construction trends and luxury markets. Recent 8-K filings detail ongoing share repurchases under a US$1 billion program, which forms part of the broader capital allocation backdrop as the company expands data-rich consumer experiences.

Key Figures

10-year savings (national): $25,335 Massachusetts savings: $38,927 MA new construction premium: 46.7% +5 more

8 metrics

10-year savings (national) $25,335 Average savings for new vs. 20-year-old homes over first ten years

Massachusetts savings $38,927 10-year total new construction savings in Massachusetts

MA new construction premium 46.7% Price premium of new vs. existing homes in Massachusetts

New Hampshire savings $35,885 10-year total new construction savings in New Hampshire

Maine savings $34,763 10-year total new construction savings in Maine

San Diego new price $1,226,693 New construction median listing price in San Diego - Chula Vista - Carlsbad, CA

San Diego existing price $1,210,500 Existing home median listing price in San Diego - Chula Vista - Carlsbad, CA

San Diego 10-year savings $29,243 10-year total new construction savings in San Diego - Chula Vista - Carlsbad, CA

Historical Context

5 past events · Latest: May 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 12	Luxury housing report	Neutral	-2.4%	Realtor.com identified 12 emerging U.S. luxury housing markets and pricing trends.
May 07	Earnings results	Positive	+1.5%	Fiscal Q3 2026 revenue and EPS grew, with Total Segment EBITDA up 18%.
May 07	New construction study	Positive	+2.0%	Realtor.com reported Q1 2026 new construction trends and pricing versus existing homes.
May 05	Platform collaboration	Positive	+2.9%	Zillow and Realtor.com agreed to share Preview listings across both platforms.
May 05	Publishing lineup	Neutral	-1.5%	William Morrow Group announced a slate of upcoming summer book releases.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent NWS news and product updates more often saw share price gains, while some general brand or imprint announcements coincided with minor pullbacks, indicating a mixed but slightly favorable reaction pattern.

Recent Company History

Over the past weeks, NWS has issued several Realtor.com® housing market studies and platform initiatives. An earnings release on May 7, 2026 reported revenue of $2.19 billion and EPS growth, and the stock rose 1.49%. A Q1 2026 new construction report on the same day preceded a 2.05% gain. A Zillow collaboration announcement on May 5 saw a 2.89% rise, while luxury market and book lineup news on May 12 and May 5 aligned with modest declines. Today’s cost-of-ownership research continues this stream of Realtor.com® data-driven content.

Key Terms

hvac, pearl score, degree days, maintenance cost

4 terms

hvac technical

"replacement of major systems like HVAC, roofs, and water heaters."

HVAC stands for heating, ventilation and air conditioning — the systems that control temperature, airflow and indoor air quality in buildings. Investors care because HVAC drives operating costs, energy use, tenant comfort and regulatory compliance; like the engine and insulation of a building, efficient modern systems can lower bills, reduce repair and replacement spending, and preserve property value, while outdated units can create unexpected expenses and vacancy risk.

pearl score technical

"Pearl, whose Pearl SCORE® rates every single-family home in the country"

A pearl score (often called the Pearl Index) is a simple measure of how well a birth control method prevents pregnancy, expressed as the number of pregnancies per 100 women-years of use. Investors use it to judge product effectiveness and market potential—like checking fuel efficiency for a car, a lower pearl score means the product works better and is more likely to gain regulatory approval, clinician support, and consumer adoption, which can affect sales and liability risk.

degree days technical

"Degree-day estimates are sourced from EIA and totaled by adding heating degree days"

Degree days measure how far and for how long outdoor temperatures differ from a chosen comfort baseline, expressed as heating degree days (when it’s colder than the baseline) or cooling degree days (when it’s warmer). Investors use them as a simple weather-driven proxy for energy demand and sales of temperature-sensitive goods and services; think of them as counting how many extra blankets or fans a region will need during a season.

maintenance cost financial

"Replacement and maintenance cost data come from estimates modeled by Pearl"

Maintenance cost is the ongoing expense required to keep an asset or operation working properly—think of the regular repairs, servicing, and parts needed to keep a car running or a building usable. For investors it matters because these recurring outlays reduce cash flow and profit, influence how long assets remain productive, and affect future capital needs and valuation assumptions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New England leads the country in new construction savings; in 16 metros, a decade of lower bills and repair costs more than covers the new construction price premium

AUSTIN, Texas, May 14, 2026 /PRNewswire/ -- Realtor.com^® today released new research showing that buyers of newly built homes save an average of $25,335 over the first ten years of ownership compared to buyers of 20-year-old homes. The savings are driven by lower energy bills and fewer major repairs. The findings reveal a wide geographic divide, with New England states offering the greatest advantage and Southern states the least, and identify 16 metros where a decade of savings from new construction fully erases the price gap with existing homes.

New construction savings come in two forms: lower utility costs from more energy-efficient construction, and delayed replacement of major systems like HVAC, roofs, and water heaters. The analysis draws on data from Pearl, whose Pearl SCORE® rates every single-family home in the country across five performance pillars — Safety, Comfort, Operations, Resilience, and Energy. The analysis finds these benefits vary dramatically depending on where a home is located, how cold the winters are, and how stringent local building codes are.

To help buyers see these savings in action, Realtor.com is introducing interactive total cost of ownership content through a dedicated cost of ownership hub and experience on new construction listings, showing personalized ten-year savings estimates on utilities, roof replacement, HVAC, and water heater costs compared to a comparable resale home, giving  buyers a clearer picture of the true cost of ownership before they contact a builder.

"Homeownership is not a one-time expense, and the ongoing costs of owning a home are where new construction really shines," said Joel Berner, senior economist at Realtor.com^®. ^"Buyers who focus only on the listing price are missing a significant part of the financial picture."

The geographic pattern is stark. New England leads the country in new construction savings, with Massachusetts topping the list at $38,927 over ten years. Stricter building codes and harsher winters amplify the efficiency advantages of newer homes in these states. The South, despite being the most active new construction market in the country, sees smaller savings. Less demanding codes and milder climates mean the energy performance gap between new and existing homes is narrower there.

Top States for New Construction Savings

State	10-Year Total New Construction Savings	New Construction Premium
Massachusetts	$38,927	46.7 %
New Hampshire	$35,885	45.5 %
Maine	$34,763	48.3 %
Rhode Island	$34,641	46.6 %
Vermont	$33,998	25.9 %

In 16 of the 300 largest metropolitan areas, the ten-year savings from buying new fully cover the price premium over existing homes. These markets span a wide range of price points and are concentrated in the South and West, where new construction premiums are modest enough to fall within reach of long-run savings. Madison, WI and Bloomington, IN are the only Midwestern markets on the list.

Metros Where 10-Year New Construction Savings Exceed the Price Premium

Metro	New Construction Median Listing Price	Existing Home Median Listing Price	10-Year Total New Construction Savings
San Diego-Chula Vista-Carlsbad, CA	$1,226,693	$1,210,500	$29,243
St. George, UT	$684,447	$683,984	$27,670
Salt Lake City-Murray, UT	$652,982	$637,650	$27,670
Seaford, DE	$580,619	$567,742	$22,075
Salem, OR	$545,333	$517,467	$31,404
Madison, WI	$534,284	$527,358	$25,983
Kennewick-Richland, WA	$528,807	$516,383	$21,187
Billings, MT	$525,477	$504,142	$28,520
Merced, CA	$455,719	$429,644	$29,243
Jacksonville, FL	$415,901	$411,583	$16,644
Bloomington, IN	$402,325	$390,692	$28,836
Greenville-Anderson-Greer, SC	$391,793	$390,098	$16,163
San Antonio-New Braunfels, TX	$339,642	$329,083	$18,227
Hattiesburg, MS	$317,817	$302,683	$25,997
Spartanburg, SC	$315,248	$314,967	$16,163
Abilene, TX	$310,873	$298,933	$18,227

"These savings estimates are actually conservative," said Berner. "Builder warranties frequently cover HVAC repairs in the early years, meaning new construction buyers often pay nothing out of pocket. And when you factor in the mortgage rate buydowns builders have been offering, which can translate to roughly $30,000 in savings over ten years, the total financial advantage of buying new becomes even more substantial."

The report also notes that builders have been more willing than existing home sellers to negotiate on price, giving buyers additional room to improve the long-run economics of a new construction purchase.

Methodology

Listing price data come from listings on Realtor.com^® in the first quarter of 2026. Utility savings data come from estimates modeled by Pearl, through their Pearl SCORE®. Energy costs are generated by multiplying consumption by retail gas and electric prices, averaged at the state level. An escalation factor sourced from EIA is applied to the state-level costs to generate cumulative savings over time. Replacement and maintenance cost data come from estimates modeled by Pearl with these three components: lifespan and degradation, replacement cost, and maintenance cost. Each component is estimated at the zip code level and aggregated to the state level. National estimates are a weighted average of state estimates based on the number of single family homes. Degree-day estimates are sourced from EIA and totaled by adding heating degree days to cooling degree days.

About Pearl
Pearl is a ratings and standards company building the national standard for home performance. Pearl SCORE® rates every single-family home in the U.S. on a 1-to-1,000 scale across five pillars — Safety, Comfort, Operations, Resilience, and Energy — so buyers, sellers, and real estate professionals can understand how a home performs in daily life. Learn more at PearlScore.com.

About Realtor.com^®

Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance, and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/new-homes-save-buyers-25-000-over-ten-years-offsetting-higher-upfront-costs-302771486.html

SOURCE Realtor.com

FAQ

What did Realtor.com reveal on May 14, 2026 about new home savings for NWS investors?

Realtor.com reported that new homes can save buyers an average of about $25,335 over 10 years versus 20-year-old homes. According to Realtor.com, these savings come mainly from lower utility bills and delayed replacement of big-ticket items like HVAC systems, roofs, and water heaters.

How much do new construction homes save buyers over 10 years compared to older homes, according to Realtor.com and NWS?

New construction buyers save about $25,335 over 10 years compared with purchasers of 20-year-old homes. According to Realtor.com, the savings are driven by higher energy efficiency and reduced repair and replacement costs, based on Pearl SCORE energy and maintenance modeling across U.S. single-family homes.

Which states offer the biggest 10-year savings on new construction homes in the Realtor.com 2026 report for NWS?

New England states provide the largest 10-year savings from buying new construction, led by Massachusetts at $38,927. According to Realtor.com, New Hampshire, Maine, Rhode Island, and Vermont also show high savings, helped by stricter building codes and colder climates that boost efficiency advantages over older homes.

In how many metros do 10-year new home savings offset the price premium, based on Realtor.com data relevant to NWS stock?

In 16 of the 300 largest U.S. metros, 10-year savings from new construction fully cover the new-home price premium. According to Realtor.com, these metros are mainly in the South and West, with examples including San Diego, Salt Lake City, Jacksonville, Madison, and San Antonio.

What new cost-of-ownership tools is Realtor.com launching in 2026 and how might this matter for NWS shareholders?

Realtor.com is launching an interactive cost-of-ownership hub and tools on new construction listings that show personalized 10-year savings estimates. According to Realtor.com, these tools will highlight projected utility, roof, HVAC, and water heater savings versus comparable resale homes, helping buyers better understand long-run housing costs.