Nashville Real Estate 2025: Fixer-Upper vs. New Construction — Which Is the Better Deal? You Might Be Surprised
For the first time in years, older homes—the charming bungalows, mid-century ranches, and Victorians that often need renovations—are selling for more than brand-new construction.
Here’s a look at the numbers nationwide:
Median price for an existing home: $429,400
Median price for new construction: $410,800
That’s an $18,600 price difference—and it flips the long-standing assumption that resale homes are the “budget” option.
If you’re deciding between a fixer-upper in East Nashville or a turnkey new build in Madison, these numbers might change your strategy.
Housing Market Trends You Need to Know
Historically, new builds came with a steep premium. From 2010–2019, the price gap between new and existing homes averaged about $66,000. Even in the past five years, the gap was roughly $25,000.
But in Q2 and Q3 of 2024, the market shifted—Nashville resale homes became more expensive than new construction. In 2025, that trend continues.
Nationwide data backs it up:
New home prices: down 0.9% year-over-year
Existing home prices: up 1.7% year-over-year
And Nashville is feeling it—especially in sought-after neighborhoods where inventory is low and “historic charm” comes with a high price tag.
The True Cost of Buying a Fixer-Upper
We love a good renovation story, but in 2025, the economics don’t always work in your favor.
Why fixer-uppers aren’t the guaranteed deal they once were:
High renovation costs: Lumber, roofing, and skilled labor in Nashville remain expensive post-pandemic.
Contractor wait times: You might wait weeks (or months) just to start work.
Hidden repair issues: Outdated wiring, foundation cracks, or mold can quickly blow your budget.
Carrying costs: Longer timelines mean more mortgage payments, rent, or storage fees.
That “affordable” historic cottage in Highland Heights or Salemtown could end up costing more than a brand-new build with a builder warranty.
Why New Construction Is Gaining an Edge in Nashville
Builders are responding to the market. They’re delivering:
Smaller, more efficient layouts
Affordable locations in Middle Tennessee
Buyer incentives like interest rate buydowns, closing cost credits, and free design upgrades
And because builders operate at scale, they can keep prices competitive—one reason new home prices are softening while resale prices rise.
When a Nashville Fixer-Upper Still Makes Sense
We’re not anti-renovation. A fixer-upper can still be the smart choice if:
You’re buying significantly below market value
You have the budget, time, and crew for the job
You want a neighborhood where no new construction exists
You’re planning a fully custom remodel
Bottom Line: Nashville Real Estate in 2025
In today’s market, “older” doesn’t mean “cheaper.” You might pay more for a home that needs extensive work than for a move-in ready, energy-efficient new build.
Before you decide, we’ll help you:
Compare Nashville new construction incentives
Run the true cost of a fixer-upper renovation
Match your budget, goals, disposition and timeline to the right property
Because whether your dream home is a historic charmer in Lockeland Springs or a modern build in Madison, Nashville Loves You—and we’re here to help you find a home that loves you back.
