Affordable options available in southern and midwestern cities

There are numerous places where new-construction homes can be purchased for around or under $275,000. Despite being more expensive upfront than older homes, the gap between the two has narrowed recently. According to a July report from the National Association of Realtors®, the median price of an existing home was $422,600, while a new home stood at $429,800.

Factoring in maintenance and repair costs on existing homes might make new constructions equally attractive. Many developers offer incentives such as upgrades on finishes, help with closing costs, and even buy-down mortgage rates. "For example, 30-year fixed rates of 4.99% are now common, with short-term rate buy-downs as low as 1.99%," explains Jim Rosewater, president and CEO of National Builder Group.

New homes often come with warranties covering repair costs and are typically built for energy efficiency. "Now is a good time to buy new construction because prices have stabilized in the last few years while existing-home prices have risen," says Realtor.com economist Joel Berner.

"This is the end of the builder’s fiscal year, and they are primed and ready to make the best possible deals right now," adds Nicole Brown, a global real estate adviser at Corcoran.

Many affordable new constructions are found in cities located in the South or Midwest regions. "Lately, there have been higher levels of new-construction activity [here] and generally lower listing prices," says Berner. "New homes in these metros are more affordable because land is cheap and plentiful."

The most affordable areas for purchasing new-construction homes include:

- Talladega, AL: Median list price for new construction: $223,990

- Opelousas, LA: Median list price for new construction: $235,000

- Stillwater, OK: Median list price for new construction: $239,827

- Kinston, NC: Median list price for new construction: $247,500

- Jonesboro, AR: Median list price for new construction: $255,555

- Florence, SC: Median list price for new construction: $256,990

- Lubbock, TX: Median list price for new construction: $261,000

- Joplin MO; Median list price for new construction; $269823;

- Albany GA; Median list Price For New Construction; 269900;

- Terre Haute IN; median List Price For New Construction; 275000;