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Why Old Homes Now Outprice New Ones in 2025

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  Published in House and Home on Wednesday, August 27th 2025 at 10:08 GMT by Forbes
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Why Vintage Properties Are Outpricing New Builds in Today’s Housing Market

In a sharp reversal of the narrative that “new is always better,” Forbes’ Brandon Kočkó‑Dín’s latest feature explains why, in many parts of the United States, a century‑old cottage can fetch a higher price than a newly‑constructed townhouse. The piece, published on August 27, 2025, stitches together data from real‑estate aggregators, industry reports, and on‑the‑ground anecdotes to paint a comprehensive picture of a market that rewards heritage as much as innovation.

1. Supply‑Side Shock: Building New Homes Is Harder Than It Looks

The article opens with the simple truth that the supply of newly built homes has not kept pace with the surge in demand post‑COVID. While the National Association of Realtors (NAR) reported a 5.8 % rise in new home starts in 2024, the pace of construction has been throttled by a “conveyor belt of shortages” in lumber, steel, and skilled labor. Supply chain disruptions that began in 2020 have not fully resolved, and the cost of materials has spiked by 12 % on average. As a result, the price per square foot for new construction climbs, making many buyers look elsewhere.

The Forbes piece notes that developers often face “tight financing windows” and stricter zoning requirements, especially in high‑density markets like the Northeast and West Coast. Even when a developer secures a permit, the permitting process can take 12–18 months, delaying the sale and adding holding costs that get passed on to buyers.

2. Demand for “Character” – The New Value Driver

Kočkó‑Dín shows that the buyer profile is shifting. Millennials and Gen Z, who are now entering the housing market, are showing a strong affinity for “character homes” that offer architectural uniqueness, historical authenticity, and a sense of place. According to a survey cited in the article, 63 % of first‑time homebuyers in the past two years cited “design aesthetics” as a top priority, over “square footage” or “modern appliances.”

Older homes often sit in neighborhoods with established streetscapes, mature trees, and community amenities that new developments struggle to replicate. For many, the “old‑school charm” of a Craftsman bungalow or a Victorian townhouse outweighs the allure of a brand‑new apartment complex with generic interiors.

3. Neighborhoods That Age Well: How Location Amplifies Value

The article dives into case studies from Portland, Portland, and Brooklyn, New York. In both cities, historic districts that were once bypassed by developers have become the hottest neighborhoods on the market. The Forbes piece argues that the value of an older home is heavily amplified by its location—a factor that newer developments often lack. “It’s not just the house; it’s the street, the park, the coffee shop down the block,” Kočkó‑Dín writes.

Zillow data referenced in the article shows that homes in the “Historic Old Town” census tract in Portland appreciate at an average of 8.4 % per year, outpacing the city’s overall growth rate of 5.7 %. In Brooklyn, the trend is even stronger, with historic brownstones seeing an 11 % annual appreciation during the same period.

4. Mortgage and Financing Dynamics

Even though newer homes might boast “energy‑efficient” features, they often come with higher upfront costs that can translate into higher monthly payments. The article points out that mortgage rates, which hit a low of 3.1 % in late 2023, have climbed to 4.7 % in early 2025, narrowing the spread between the cost of buying a new build versus a pre‑existing home. The fact that older homes have already depreciated from their purchase price—meaning the buyer’s equity is higher—makes them a more attractive option for risk‑averse borrowers.

The Forbes article quotes a mortgage broker who notes that many buyers are now “looking for homes with an equity cushion,” which older properties inherently provide due to their history of appreciation. Conversely, new builds, often still “under construction,” can carry higher “construction risk” and potentially higher taxes due to their classification as commercial or mixed‑use.

5. The Role of Resale Value and Investment Appeal

A significant portion of the article examines the resale value of older homes versus new builds. Real‑estate analytics firm CoreLogic reports that, on average, older homes outpace new construction by 3.2 % in resale appreciation over a 5‑year horizon. This difference, Kočkó‑Dín points out, is not merely anecdotal; it has real implications for investors, particularly those buying to flip or rent.

Additionally, many older homes are “zoned” in ways that allow for multi‑unit conversions, providing homeowners with the option to create rental income streams. The Forbes piece highlights a trend where buyers are looking to buy “two‑bedroom” historic homes and convert them into “single‑family rentals,” taking advantage of the high demand for affordable housing in major metros.

6. Looking Ahead: Will the Trend Continue?

The article ends on a cautious note. While the current data shows older homes outperforming new builds, the real‑estate landscape is fluid. Rising construction costs could eventually reduce the price gap, and the advent of modular construction—often touted as cheaper and faster—may offer a new class of “new‑old” homes that combine the best of both worlds. The Forbes piece notes that the housing market’s “supply‑demand equilibrium is a moving target” and that buyers and developers alike should stay vigilant.

Bottom Line

The Forbes article convincingly argues that older homes are suddenly becoming “the most desirable homes on the market.” Supply constraints, evolving buyer preferences, neighborhood desirability, and financial dynamics all converge to give historic properties an edge over shiny new builds. For investors and first‑time buyers alike, understanding these forces is essential for making informed decisions in a market that increasingly rewards character over novelty.