Why Move-Up Buyers Are Choosing New Construction

There’s a noticeable shift happening in today’s U.S. housing market. More move-up buyers — homeowners who already own a property and are looking to upgrade — are choosing new construction homes instead of existing resale properties.

Traditionally, move-up buyers searched for larger resale homes or properties in stronger school districts. But today, many are heading straight to new construction communities. Here’s why.

1️⃣ Low Resale Inventory and Double Competition

Across much of the country — including Chicago suburbs like Naperville, Northbrook, and Skokie — well-priced 3–4 bedroom homes often go under contract quickly.

For move-up buyers, this creates a stressful “double competition” scenario:

• First, they must sell their current home at a strong price.

• Then, they must compete aggressively to secure their next home.

New construction communities often have available inventory, structured release schedules, and clearer timelines. Instead of competing in multiple-offer situations, buyers gain more control and predictability.

2️⃣ Builder Incentives in a High-Rate Environment

Mortgage rates remain elevated, and recent strong employment data has reduced expectations of rapid Fed rate cuts. In this environment, builders are aggressively offering incentives to attract buyers, such as:

• Closing cost credits

• Mortgage rate buydowns

• Free or discounted upgrade packages

Resale sellers typically cannot offer rate buydowns or large structured incentives. For move-up buyers, a builder-subsidized lower effective rate can significantly improve affordability.

3️⃣ Lower Maintenance and Predictable Costs

Existing homes often come with aging systems — roofs, HVAC units, windows, plumbing — that may require replacement soon. With labor and material costs rising, unexpected repairs can be expensive.

New construction homes:

• Meet modern energy-efficiency standards

• Often include builder warranties

• Reduce major repair risks in the first several years

For dual-income households and families with children, predictable expenses matter. New homes offer financial stability in the early years of ownership.

4️⃣ Lifestyle-Driven Design

Post-pandemic lifestyle changes have reshaped buyer priorities. Home offices, workout spaces, and flexible living areas are now highly desirable.

New construction homes typically offer:

• Open-concept layouts

• Large kitchen islands

• Dedicated office space

• Loft or bonus areas

Move-up buyers aren’t just upgrading square footage — they’re upgrading lifestyle quality. Remodeling older homes to achieve similar layouts can be costly and time-consuming.

What This Means for the Chicago Market

Chicago metro differs from high-growth Sunbelt markets. Large-scale new construction communities are more limited. In areas like Naperville, Plainfield, Aurora, and parts of Lake County, builder projects are active — but inventory is finite.

Land and construction costs are rising, and many builders increase prices in phases. Buyers who enter early in a development cycle often secure better pricing than those who wait.

Today’s move-up buyers are thinking strategically — not just about comfort, but about 5–10 year asset positioning.

The Message for Buyers and Sellers

For Buyers

Waiting indefinitely for rate cuts may not be the safest strategy. If rates drop, demand may surge — and so may prices. In new construction, early-stage pricing is often the most favorable.

For Sellers

This may be an ideal moment to capture move-up demand. Resale homes remain attractive, especially as new construction prices rise. As builder prices increase, well-priced resale homes can look even more competitive.

The market is not frozen. It is shifting. Those who move strategically often benefit the most.

Real estate is about timing and positioning.

If you’d like to discuss your personal move-up strategy or explore new construction opportunities in the Chicago area, feel free to reach out.

Chicago Real Estate📞 773-717-2227✉️ ChicagoBDB@gmail.com