New Homes are Less Expensive to Maintain

April is new homes month. And one of the virtues of a newly constructed home is the savings that come from reduced energy and maintenance expenses.

Data from the 2009 American Housing Survey (AHS) offer proof. The AHS classifies new construction as homes no more than four years old.

For example, for routine maintenance expenses, 26% of all homeowners spent $100 or more a month on various upkeep costs. However, only 11%  of owners of newly constructed homes spent this amount. In fact, 73% of new homeowners spent less than $25 a month on routine maintenance costs.

Similar findings are available for energy expenses. On a median per square foot basis, homeowners spent 78 cents per square foot per year on electricity. Owners of new homes spent 65 cents per square foot per year.

For homes with piped gas, homeowners spent on average 53 cents per square foot per year. Owners of new homes spent 38 cents per square foot per year.

These data highlight that a new home offers savings over the life of ownership due to reduced operating costs. This is one of the many reasons that the current system of appraisals needs updating to reflect the flow of benefits that come from features in a new home.

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27 Responses to New Homes are Less Expensive to Maintain

  1. Reblogged this on Park Square Homes and commented:
    A great look at new home expenses in terms of maintenance!

  2. jthomashomes says:

    Great article! We will be sure to share this with our potential buyers.

  3. David says:

    That’s the same thing with CARS. Better gas mileage and no maintenance when they are brand new vs. older, high mileage cars…

  4. [...] National Association of Home Builders recently reported that the majority of new homeowners (about 73% according to the 2009 American Housing Survey) spend [...]

  5. excellent information, we’ve been preaching this for years; great to have third party confirmation.

  6. [...] New Homes are Less Expensive to Maintain « Eye on Housing Posted by Chad Johannesen on April 9, 2012 in Uncategorized with No Comments YetNew Homes are Less Expensive to Maintain « Eye on Housing. [...]

  7. Ron Struthers says:

    A better deal than a Chevy. Volt
    Lasts longer and it’s yours

  8. [...] of your new home. But, did you know that new homes can also help you save money? According to a NAHB Eye of Housing article, new homes are less expensive to [...]

  9. [...] of the best benefits is that a brand new home can help you save money. According to a article by NAHB Eye on Housing, new homes are much less expensive to [...]

  10. In addition to the maintenance and utilities being lower, most insurance companies give a large discount for newer construction. The chances of a loss from pipe burst or electrical fire is less.

  11. In addition to lower maintenance and utility costs, the homeowners insurance is is usually discounted for newer homes!

  12. [...] amount. In fact, 73% of new homeowners spent less than $25 a month on routine maintenance costs.Click here to see more…. This entry was posted in Uncategorized by Bob Horsnell. Bookmark the permalink. [...]

  13. [...] In January, Eye on Housing took a look at the age of the housing stock. In that analysis, we found that according to the 2009 American Housing Survey (AHS), the median age of owner-occupied homes in the United States is 34 years old, 11 years older than the median age found in the 1985 AHS. So it is clear that the U.S. housing stock is aging. And older homes are typically more expensive to maintain. [...]

  14. [...] In January, Eye on Housing took a look at the age of the housing stock. In that analysis, we found that according to the 2009 American Housing Survey (AHS), the median age of owner-occupied homes in the United States is 34 years old, 11 years older than the median age found in the 1985 AHS. So it is clear that the U.S. housing stock is aging. And older homes are typically more expensive to maintain. [...]

  15. [...] Maintaining your new is easier and less expensive then an an older homes. New homes come with warranties. Monthly operating costs are lower. Materials are better and more durable meaning they will last longer. Alot of older homes can become money pits. http://eyeonhousing.wordpress.com/2012/04/04/new-homes-are-less-expensive-to-maintain/ [...]

  16. […] 73% of new homeowners spent less than $25 a month on routine maintenance costs.”  Click here to read the full […]

  17. […] fact that you’ll save money on maintenance by buying a new home is backed by the 2009 American Housing Survey, which showed that 26 percent of all homeowners spend at least $100 on maintenance every month, […]

  18. Hello, I too have the same opinion, new homes are less expensive to maintain as they are newly built and all the accessories and equipments are brand new. One more advantage of new homes is that home warranties are offered by manufacturers and it is a profit part for a buyer.

  19. […] American Housing Survey revealed new homeowners spend less than $25/month on maintenance, while older homes’ owners […]

  20. […] from the American House Survey (AHS) over the last several years have shown that new construction homes can cost as much as $100/month […]

  21. […] wondering whether it’s better to buy a new home vs. an older home? Maintenance costs may be a deciding factor. Data has shown that owners of newly constructed homes spend less on […]

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