top of page
Search

The Pros and Cons of New Construction vs. Resale Homes

  • sasha540
  • 12 minutes ago
  • 3 min read

Choosing between a new‑construction home and a resale property is a major decision in Canada. Each option brings unique advantages and trade‑offs. New homes offer modern features and customization, while resale properties often provide character, established communities, and potentially lower costs.


This guide helps you navigate the differences as they apply in Canada—considering lifestyle, budget, and future plans.


Key Takeaways


  • New-construction homes typically carry a premium over comparable resale properties

  • Resale homes often cost less upfront, giving buyers more room to negotiate .

  • New builds allow customization of finishes, layouts, and fixtures.

  • Resale homes come with established neighborhoods and amenities.

  • Older homes may require more maintenance and updates.


Understanding the Differences


New-Construction Homes


Built with modern materials and warranties, new homes include the latest tech, energy-efficient features, and builder incentives (e.g., upgrades or closing cost assistance). However, they may face build delays or lack mature landscaping.


Resale Homes

Situated in mature communities, resale homes tend to offer immediate move-in and price flexibility. They may demand more upkeep and renovation over time.


Market Snapshot (Mid‑2025)


The Canadian housing market continues to adjust under the weight of high interest rates, global uncertainty, and soft buyer demand.


Home Prices

  • National average: Down ~1.3% YoY (as of June 2025)

  • Toronto (GTA):

    • June average price: C$1.10M (↓ 5.2% YoY)

    • Benchmark price: C$995,100 (↓ 5.5%)


Housing Starts

  • 2024 total starts: ~245,000 (↑ 2% from 2023)

  • June 2025 SAAR: ~283,700 units

  • Strong activity in suburban and low-rise markets; urban condos still lagging


Interest Rates

  • Bank of Canada rate: Cut to 2.75% in March 2025

  • Additional cuts expected by early 2026 to stimulate demand


Cost & Financial Considerations

  • New homes often require higher down payments (15–25%) and include GST on purchase price .

  • Resale homes can be financed with a 5% down payment and usually exclude GST.

  • Utilities and maintenance: New builds are more energy-efficient—NRCan data shows they outperform R-2000 standards (~EnerGuide ~80 vs. older homes ~66)—resulting in 30% or more energy savings versus older homes .

Energy Efficiency & Environmental Impact

  • Codes & standards: Modern homes follow updated energy codes and programs like EnerGuide and R-2000 blog.remax.ca.

  • They feature advanced insulation, windows, HVAC systems, and smart tech, reducing annual energy costs and lowering GHG emissions.


Location & Community

  • New builds often appear in growing suburbs or developing neighborhoods, meaning future amenities may take time to arrive.

  • Resale homes provide instant access to mature schools, transit, parks, and established community infrastructure.


Customization & Design

Feature

New Construction

Resale Homes

Customization

Extensive at purchase

Incremental, post-purchase

Layout

Modern, open-concept designs

Often larger spaces or unique layouts

Move-in Ready

Pre-construction homes require waiting

Immediate move-in


Maintenance & Warranties

  • New homes include builder warranties (e.g., 5-year coverage on major components) and have fewer maintenance needs short-term.

  • Resale homes may need more ongoing upkeep and include risks for unforeseen repairs, even if they hold historic charm .


Timing & Move‑In Readiness

  • New builds: Expect 9–18 months for custom homes; spec homes may be quicker, but delays from weather or supply issues are common .

  • Resale homes: Available to move into upon closing—ideal for buyers with a deadline .


Investment Potential

  • New homes may appreciate as the area develops, thanks to modern features.

  • Resale homes often appreciate steadily in established locations.

  • Future value is influenced by location, community plans, and broader market trends.


Conclusion


In Canada’s evolving real estate market:

  • New construction homes appeal to buyers seeking customization, warranties, modern efficiency, and planned communities, with the caveat of higher costs and longer waits.

  • Resale homes suit those needing swift occupancy, mature neighborhoods, and upfront affordability, though they may require more upkeep.

  • Your choice depends on personal priorities: budget, timeline, energy-efficiency goals, and lifestyle needs.


Recommended For You:


Find more great tips, strategies, and real estate information on our blog.


View new listings here.


I am a Victoria-based local realtor with eXp Realty. My commitment to honesty, integrity, loyalty, and hard work have been essential pillars for me because they drive a high standard of excellent service for my clients. Helping you realize your dream is my goal!


I service Vancouver Island, but my focus is on Victoria, Sooke, Saanich, Malahat, Shawnigan Lake, Cobble Hill, Duncan, and the rest of the Cowichan Valley.



 
 
 

Comments

bottom of page