Understanding the Modern Homeowner: New Construction vs. Existing Homes

Feb 25, 2025

A homebuilder wearing a toolbelt stands smiling in a new construction home.

Rising costs, unpredictable weather, and a growing focus on return on investment (ROI) are shaping homeowner behavior in 2025. These factors influence how homeowners approach property upkeep and maintenance and also provide valuable insights for builders seeking to meet their clients' evolving needs.

We surveyed over *2,000 U.S. homeowners and discovered distinct differences between homeowners who recently purchased a new construction home and homeowners who bought or owned an existing home. These differences include a resurgence of DIY projects and a heightened awareness of extreme weather risks.

These shifts could inform how builders approach future projects—from prioritizing resilience-focused features to helping homebuyers make choices that could prevent costly maintenance down the line.

Key takeaways

Over half (60%) of new construction homeowners significantly exceeded their maintenance budgets vs. 10% of homeowners of existing homes. This suggests a potential gap in expectations regarding ongoing maintenance costs for homeowners with newly built properties.
Most new construction homeowners (81%) are "very likely" to take on DIY maintenance in 2025 to help save on costs. This contrasts with owners of existing homes, only 33% of whom reported the same intention.
New construction homeowners heavily prioritize protecting their home's value, with 74% identifying ROI as a primary motivator for maintenance. That’s compared to just 23% of respondents with existing homes.
Many (79%) new construction homeowners feel very prepared for a natural disaster vs. only 28% of homeowners of existing homes.

1. Budgeting: Expectations vs. reality for new builds and existing homes

Properly planning seasonal maintenance is essential for stomping out repairs and promoting a home’s long-term health. Concerningly, our data reveals significant hurdles homeowners face in balancing seasonal maintenance with budget management—particularly for new construction homeowners.

A striking 60% of new construction homeowners went “significantly over budget” for maintenance in 2024 compared to 10% of respondents with existing homes. Interestingly, nearly all new construction homeowners (98%) set a maintenance budget, while only 78% of homeowners with existing homes reported doing the same.

This could suggest that while new construction homeowners are more likely to set a budget, their expectations in 2024 were misaligned with the actual costs of upkeep.

When it comes to determining annual home maintenance budgets, the National Association of Home Builders (NAHB) found older homes (pre-2010) demanded around 5% of their value for annual upkeep, while newer homes typically required around 3%. This difference underscores how new construction advancements can translate to lower ongoing expenses for homeowners.

For example, a newly built home valued at $400,000 could cost approximately $12,000 annually to maintain, while an existing home with the same value could cost $20,000 annually.

2. ROI motivates new build homeowners more than homeowners of existing homes

New construction homeowners view their properties as long-term assets. The majority (74%) of new construction homeowners said protecting or increasing their home’s ROI was a key reason they completed routine maintenance, compared to just 23% of homeowners with existing homes.

A bar chart compares maintenance motivations of new construction homeowners vs. owners of existing homes.

This focus on financial outcomes highlights new construction homeowners’ desire for more affordable home solutions. For example, modern features that support energy efficiency and extreme weather resilience could contribute to sustained ROI over time. The cost required to maintain a home also plays a pivotal role in its overall value.

3. New construction homeowners outpace other groups in seasonal maintenance

Owners of newly built homes demonstrated a proactive approach to seasonal maintenance in 2024, reflecting their commitment to protecting their investment. The vast majority (99%) of new construction homeowners reported completing at least one seasonal maintenance task this past year.

The most common tasks for new construction homeowners include replacing air filters (75%), inspecting and maintaining gutters and downspouts (57%), and cleaning dryer exhaust vents (56%). Owners with existing homes reported similar priorities but at lower rates—64% plan to replace air filters, 50% to clean dryer vents, and 46% to maintain gutters.

Furthermore, nearly half (47%) of new construction homeowners completed 3-5 maintenance tasks, compared to just 39% of owners with existing homes. The disparity widened with higher task volumes:

Approximately 20% of new-build homeowners completed 6-9 tasks, while only 10% of owners with existing homes did the same.
While 5% of new construction owners managed 10 or more maintenance tasks, just 3% of owners with existing homes did the same.

The value new construction homeowners place on protecting their investment and ROI could be another reason they were attracted to a newly built home in the first place. Many of the features that qualify for insurance discounts (i.e., storm shutters, updated electrical or plumbing systems, and new roofs) are often standard in new construction homes.

This makes new builds an attractive option for homeowners who want to save on insurance premiums and maximize their home’s value.

4. New construction homeowners prioritize disaster preparedness in 2025

Natural disasters and extreme weather events are a persistent and growing threat. Recent natural disasters, like the Los Angeles wildfires and extreme cold in the South, highlight the importance of proactive measures that protect homes from damage.

This concern is increasingly top of mind for all homeowners. Our 2024 Housepower Report found that the number of homeowners prioritizing extreme weather preparedness increased year over year. However, a significant difference exists between new construction homeowners and homeowners of existing homes.

Two donut charts compare natural disaster preparedness for new build homeowners vs. owners of existing homes.

The majority (79%) of new construction homeowners said they felt “very prepared” for a natural disaster or severe weather event, compared to just 28% of homeowners with existing homes.

This data could highlight how growing concerns about extreme weather are driving homebuyers toward new construction. New homes that are built for the future often offer advanced materials and disaster-resistant features that can enhance resilience to wildfire, flood, or hurricanes. This makes them an attractive option for those seeking greater protection from extreme weather.

Modern insurance for modern homes

Our survey reveals valuable insights into the priorities of new construction homebuyers. Partnerships, like those with Hippo, can help further enhance the value this market seeks.

Hippo’s embedded insurance platform complements modern building practices by seamlessly integrating tailored insurance solutions into the homebuying process. This approach delivers affordable, personalized coverage based on each home’s unique plans and specs, even in challenging insurance markets like California, Florida, and Texas.

Are you a builder interested in boosting customer satisfaction while eliminating closing delays? Let’s talk about how Hippo can help you empower your clients with the right coverage.

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