Not usually. New construction homes often come with a price premium because they’re modern, energy-efficient, and in turnkey condition. Resale homes may be less expensive upfront but could require upgrades or repairs that add to the long-term cost.

New Homes: The Premium for Brand-New

Builders typically price new homes higher than similar resale properties in the same area. That’s because buyers are paying for:

Modern finishes and floorplans designed for today’s lifestyles.
Energy efficiency and smart-home features that reduce long-term utility costs.
Lower immediate maintenance needs, since everything is new.
Builder warranties, which can save money if issues arise in the first few years.

However, this premium can make new construction less affordable in the short term, especially in high-demand markets like San Francisco and Marin where land is scarce.

Resale Homes: Potential Savings, Potential Costs

Resale properties are often priced lower per square foot compared to new builds. They may also be located in established neighborhoods with mature trees, schools, and transit access that new subdivisions can’t match.

But there are tradeoffs:

Upgrades needed — older kitchens, bathrooms, or systems may need replacing.
Higher maintenance risk — roofs, plumbing, and foundations can mean big-ticket repairs.
Less efficient — older insulation, windows, and systems can mean higher monthly utility costs.

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Which Is the Better Value?

If you want turnkey convenience, low maintenance, and modern design, new homes may justify the higher price.
If you value character, location, and potential for customization, resale homes may offer more bang for your buck.
In the Bay Area specifically, resale homes are often the more common and accessible option, since land for new builds is limited.

✅ Bottom Line: New homes usually cost more upfront, while resale homes may save you money initially but could carry higher maintenance and upgrade expenses. The right choice depends on your priorities, budget, and long-term plans.

And if you look at San Francisco as an example, the numbers highlight why resale homes dominate the market. The city has been adding only about 2,000 new units a year, when it should have been building 5,000+ annually for the past 30 years. That shortfall means new construction is hardly competition for resale properties, there simply aren’t enough of them.