Are New Construction Homes Really Cheaper Than Renovated Homes in Los Angeles County?

by Martel Esquivel

Are New Construction Homes Really Cheaper Than Renovated Homes in Los Angeles County?

Let’s set the scene: You’re house hunting in Los Angeles County, scrolling through listings and dreaming about your next move. You might assume that a brand-new home—sparkling kitchens, untouched bathrooms, and that fresh paint smell—would always cost a premium compared to a renovated older home. But in today’s market, that’s not necessarily the case. In fact, new construction homes are often priced at or even below the cost of extensively renovated homes. Let’s dig into why this surprising trend is happening—and what it means for buyers.

Why Are Prices So Close?

It’s all about supply, demand, and the cost of building. Over the past few years, Los Angeles County has seen a surge in new construction, especially in up-and-coming neighborhoods. Developers, eager to attract buyers, have kept prices competitive—sometimes even undercutting the price of renovated older homes in the same area.

Meanwhile, the cost of renovating older homes has skyrocketed. Between rising labor costs, supply chain hiccups, and stricter building codes, flippers and homeowners have to invest a lot more to bring a property up to modern standards. Those costs get passed on to you, the buyer.

Comparing Apples to Apples

  • New Construction: These homes come with energy-efficient systems, warranties, and the latest layouts. You’re less likely to face surprise repairs in the first few years, and you get to enjoy that “new home” feeling.
  • Renovated Homes: While they might have charm and mature landscaping, the quality of renovations can vary. Some updates are only surface-deep, and older foundations or systems may still need attention.

In many Los Angeles neighborhoods—think Inglewood, North Hollywood, or even pockets of the San Fernando Valley—you’ll find new homes listed for prices that rival or beat fully renovated older properties just around the corner. It’s not uncommon to see a new construction three-bedroom home priced at $900,000, while a similarly sized, beautifully renovated 1950s home next door asks for $950,000 or more.

What’s Driving the Trend?

  • Builder incentives: Developers may offer closing cost help, rate buy-downs, or other perks to sweeten the deal.
  • Renovation fatigue: Many buyers prefer move-in ready homes and are willing to pay a premium for peace of mind.
  • Inventory shifts: With more new homes entering the market, there’s more competition among sellers—keeping prices in check.

What’s the Best Choice for You?

The decision comes down to your priorities. If you crave modern features and low maintenance, new construction might be a better value than you’d expect. If you love character and established neighborhoods, a renovated home could still win your heart—but be prepared to pay for those upgrades.

Either way, today’s Los Angeles market offers more choices than ever before. It’s a great time to compare your options and see which path leads you home.

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Martel Esquivel

Agent | License ID: sr163045723

+1(562) 818-4499 | martel.esquivel@exprealty.com

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