In the current housing market, investing in newly built single-family homes has become an increasingly wise decision.
For potential homeowners, developers like Kolter Homes—which has worked on EB5AN-sponsored projects such as Twin Lakes, Rocky River, and Tamarack—are particularly well-positioned to capitalize on the rising demand for fresh, energy-efficient homes that cater to today’s buyers.
This article discusses why, as market conditions evolve, new homes offer a compelling financial advantage over older properties, making them an attractive choice for buyers seeking long-term value.
The Rising Appeal of New Homes
Why Single-Family Homes Are in Demand
The Growing Age of America’s Housing Stock
Modern Living: Efficiency and Flexibility
Real Estate and EB-5
The Rising Appeal of New Homes
Today’s housing landscape has made newly constructed homes a smart investment. Though new houses generally come with a higher initial price tag than their older counterparts, the long-term savings from lower maintenance and fewer repairs more than compensate for the higher upfront cost.
Brand-new homes boast modern materials, the latest energy-efficient features, and updated appliances, all of which reduce the likelihood of immediate repair costs. Furthermore, many homebuilders provide warranties that cover potential structural issues for the first few years.
Conversely, as the U.S. housing stock ages, many older homes are facing significant maintenance challenges. For instance, properties older than 25 years often need substantial updates, including roof repairs, electrical upgrades, and plumbing replacements. In contrast, a new home comes with peace of mind, as its systems are brand new, and homeowners can avoid these inevitable expenses for years.
Why Single-Family Homes Are in Demand
The demand for single-family homes remains robust for several reasons—one of the chief reasons being the shortage of existing homes for sale.
Many homeowners are holding onto their properties, further squeezing the inventory of resale homes.
Developers are adapting to market needs by adjusting their designs to make new homes more affordable. For example, average square footage has been shrinking slightly, with homes in 2024 averaging around 2,384 square feet, down from previous years. In addition, builders are opting for more cost-effective materials that maintain quality but reduce overall prices.
These shifts ensure that newly built homes remain within reach for a broader range of buyers. Despite the pressures of rising construction costs, new home prices have become closer to those of older homes, creating a favorable condition for buyers.
The Growing Age of America’s Housing Stock
The age of the U.S. housing stock continues to climb, with the average U.S. home now being 41 years old, up from 32 years prior to the 2008 financial crisis.
While older homes can offer character and charm, they often come with a range of expensive maintenance needs. According to a study by the Federal Reserve Bank of Philadelphia, homeowners in older homes—especially those built before 1970—face significantly higher repair costs than those in newer properties. This trend is true for even relatively “newer” houses—homes built between 1970 and 1999 typically require 26% more in maintenance than their post-2000 counterparts.
For many buyers, this means older homes simply aren’t worth the investment when compared to new homes. With interest rates remaining high, financing repairs on older properties through home equity loans has become prohibitively expensive. Additionally, older homes often struggle to meet modern building standards, which are essential for protecting against extreme weather events like storms or flooding.
Modern Living: Efficiency and Flexibility
Newly built homes address many of these issues directly. They are designed with modern building codes and materials that prioritize sustainability, durability, and energy efficiency. As energy prices rise, the efficiency of newer homes offers considerable savings on utilities over time.
Whether it’s advanced insulation, double-glazed windows, or high-efficiency heating and cooling systems, new homes provide tangible benefits in terms of reducing long-term operational costs.
Moreover, homebuyers can also take advantage of customizability in many new construction projects, tailoring their home to suit their tastes and needs. This flexibility is particularly appealing for those who might otherwise face the expense and hassle of renovating an older property.
Real Estate and EB-5
Given the strong demand for single-family homes, it’s no surprise that their development appeals to EB-5 investors as well.
The EB-5 Immigrant Investor Program offers foreign nationals U.S. permanent residency in exchange for an investment that creates at least 10 jobs. And some of the most sought-after EB-5 projects involve partnerships between top-tier developers and reputable regional centers to fund single-family home developments.
This means you can take advantage of today’s housing market not just as a homebuyer, but also as an EB-5 investor—creating opportunities for both financial growth and U.S. residency. The first step of this process is partnering with a trusted regional center.
EB5AN has worked with leading developers on successful single-family home projects, helping more than 2,300 families from 70+ countries relocate to the United States as lawful permanent residents.
To learn more about the EB-5 process and explore our first-rate, low-risk EB-5 regional center projects, book a free call with our EB-5 team today.
