New Construction vs. Resale in the Texas Hill Country

Both zip codes have seen sustained builder activity over the past several years [1][2]. Multiple national and regional builders are active in each, offering product types that range from entry-level paired or smaller-lot homes to custom and semi-custom estate properties on acre-plus lots. The Hill Country corridor attracts builders because demand remains consistent — driven by population growth in Kendall and Comal counties [1][2], continued in-migration from higher-cost states [5], and a school district network (primarily Boerne ISD) that draws families specifically [14].

New construction in this corridor tends to cluster in master-planned communities [4]. These developments come with homeowners association structures, amenity packages — typically including community pools, trails, and parks — and uniform architectural design standards. For buyers, that predictability has value. For sellers in adjacent or competing neighborhoods, those communities represent a defined competitive set.

The density and scale vary. Some communities in 78006 and 78015 are large-scale master plans with multiple phases, clubhouses, and commercial-adjacent amenities. Others are smaller enclaves of forty to eighty lots with a park and a trail. The price points span significantly — from the high $200,000s in more compact product types to well above $1 million in custom estate communities [4][5]. Understanding which segment of new construction you are evaluating matters more than the broad label of "new build."

Builder Incentives: How They Actually Work

Nearly every active builder in this corridor offers some form of buyer incentive [6]. The most common are rate buydowns (where the builder pays to reduce your mortgage rate for the first two to three years), closing cost credits, and upgrade packages at the design center. According to the National Association of Home Builders (NAHB), 64% of builders nationwide offered sales incentives in 2025 — a five-year high driven by persistent affordability challenges [6]. These incentives are marketing tools. They are structured to make the monthly payment look attractive at the point of sale, and they work — a rate buydown that brings your effective rate from 7% to 5.5% in the first year creates a meaningful reduction in your monthly housing cost during that period.

But incentives affect the total cost of ownership differently than a straight reduction in purchase price. A rate buydown is temporary. Once the buydown period expires, the rate resets to the note rate — and your payment increases [7]. Closing cost credits reduce your out-of-pocket at closing but do not lower the appraised value against which your property taxes will be assessed [10]. Upgrade packages increase the perceived value of the home but rarely return their full cost at resale [16]. Understanding this distinction is important: incentives change the timing and presentation of cost, not necessarily the total amount you pay.

The Base Price Is Not the Final Price

Builder pricing in the Hill Country corridor typically starts with a base price that reflects a standard floor plan on a standard lot, with builder-grade finishes [4]. The base price is what gets advertised. The price you actually pay — the total contract price — depends on your lot selection (premium lots with views, larger acreage, or cul-de-sac positions carry premiums), structural options (additional bedrooms, extended garages, outdoor living areas), and design center selections (flooring, countertops, cabinetry, fixtures, appliance packages).

The design center dynamic is worth understanding clearly. Builders typically include a set allowance for design center selections in the base price. Upgrading beyond that allowance adds to the contract price. For some buyers, the total upgrade cost represents 10% to 20% or more above the base price [16] — a range that varies significantly by builder and product tier. The design center visit is often an emotional experience, and builders understand that. Going in with a predetermined budget for upgrades — and sticking to it — changes the financial outcome substantially.

Construction Quality Varies Between Builders

Not all builders build to the same standard. This is not a generalization — it is a structural reality of the production home market [15]. National volume builders operate on margin structures that require consistent material choices and construction methods. Regional and smaller builders may offer more flexibility and, in some cases, higher-specification construction, but at different price points. Within the national builder segment, quality standards vary between product lines: a builder's entry-level line and their premium line may be built by different subcontractor teams with different materials.

For buyers, the practical approach is to visit completed homes (not just model homes), attend open houses in communities that are one to two years old, and observe the condition of common areas, model consistency, and homeowner satisfaction. Independent home inspections during the option period are standard practice and strongly recommended, even on new construction. Builders object to this less often than buyers assume.

Timeline Risk

New construction timelines are estimates, not guarantees. Supply chain disruptions, weather delays, labor shortages, and permitting backlogs can push closing dates by weeks or months [15]. In the Hill Country, weather-related delays — particularly during spring thunderstorm season — are not uncommon. Builders typically include contingency language in contracts that allows for extended timelines without triggering buyer remedies. If you are coordinating a cross-state move with a California home sale, a delayed new-construction closing can create significant logistical and financial pressure. Understanding the builder's track record on timeline adherence — and building in schedule buffer — is essential.

Warranty and Post-Close Support

Most production builders offer a one-year workmanship warranty, a two-year systems warranty (covering mechanical and electrical systems), and a six-year structural warranty [8][9]. This "1-2-6" structure aligns with the warranty framework recognized under the Texas Residential Construction Liability Act (RCLA), found in Chapter 27 of the Texas Property Code [8]. Builders may offer extended or enhanced coverage beyond these minimums, and the quality and responsiveness of warranty service varies widely [9]. A builder's willingness and ability to address punch-list items and warranty claims after closing is one of the most important — and least discussed — factors in evaluating a builder. Talking to homeowners who closed one to two years ago in the same community provides more useful information than any marketing material.

The Hidden Cost of "New"

New construction communities come with characteristics that affect livability during the initial years. Landscaping is immature — there is no shade canopy, no established garden, and in many cases, the lot is surrounded by active construction sites [18]. Construction traffic, dust, and noise are ongoing until the community's final phase is complete. In larger master plans, that timeline can span five to ten years. Future phases may alter the neighborhood's character — a community that feels open and rural in phase one can feel significantly different when adjacent phases are built out with different product types or higher density. Buyers should review the master plan, understand how many phases remain, and evaluate what the community will look like at buildout, not just at purchase.

If you are selling a resale home in 78006 or 78015, you are not competing only against other resale listings [5]. You are competing against builders who are offering financial incentives that directly change the buyer's monthly payment calculation.

How Builder Financing Changes the Buyer's Math

Consider the practical example: a builder offers a 2-1 rate buydown on a $525,000 home — year one at 4.5%, year two at 5.5%, then the note rate of 6.5% from year three onward [7]. In year one, the buyer's monthly principal and interest payment is materially lower than what a resale buyer would pay at the prevailing market rate for the same home price. Even though the rate buydown expires, it creates an initial monthly payment advantage that a resale seller cannot match directly — unless the seller offers a price reduction or a temporary buydown through their own closing cost contribution.

Builders also offer closing cost credits that can cover lender fees, title insurance, and prepaid items — reducing the cash a buyer needs to bring to closing [6]. For a buyer comparing two options at similar price points, the lower cash-to-close requirement on new construction can be the deciding factor, even if the long-term cost of ownership is comparable or slightly higher.

Why Buyers Choose Builders Over Comparable Resale

Beyond financing, several factors tilt buyer preference toward new construction at similar price points. The perception of "new" carries weight — no deferred maintenance, no unknown history, everything is under warranty [8]. The design center process lets buyers personalize finishes, which creates emotional ownership before closing. And builders market an aspirational lifestyle through model homes, community amenities, and curated neighborhood events. For first-time buyers or relocators unfamiliar with the local resale inventory, the builder's sales operation is often more visible and accessible than the resale market [15].

What Resale Sellers Can and Cannot Control

A resale seller cannot replicate a builder's rate buydown or closing cost incentive package. But resale sellers control factors that builders cannot match: established landscaping, mature trees, a known and proven neighborhood, often larger lots in older subdivisions, and the ability to negotiate on price, repairs, and closing timeline in ways that production builders cannot or will not.

Competitive positioning starts with understanding the builder's inventory and pricing in your immediate area [5]. If a builder is offering completed spec homes (inventory homes) at aggressive pricing in your zip code, that establishes a price ceiling for resale in the same general area. If the builder's pricing is higher, your resale home may benefit from a value comparison. If the builder's pricing is lower — particularly on entry-level product — resale sellers in a similar price band need to understand the competitive pressure and price accordingly.

Staging, presentation, and marketing quality matter more when buyers have a visible alternative. A well-presented resale home that emphasizes the advantages of an established property — mature trees, completed landscaping, proven drainage, known HOA costs — can compete effectively against new construction. But it requires intentional effort and honest market positioning.

New construction does not dominate every segment of the market. In established neighborhoods with mature trees, proven construction, and settled communities, resale homes compete on different terms — and often win.

Established Neighborhoods and What They Offer

Communities like Bentwood, The Ranches at Creekside, Menger Springs, and Tapatio Springs in 78006, or the Fair Oaks Ranch Country Club area and The Fairways in 78015, have advantages that new construction cannot replicate quickly. The trees are twenty or thirty years old. The drainage systems have been tested through multiple Texas storm cycles. The HOA structure, including dues and rules, is established and transparent — buyers know exactly what they are getting [15]. The neighborhood character is defined, not projected.

These communities also tend to offer larger lots than what most current production builders are delivering in their standard product lines [4]. In the Hill Country corridor, lot sizes in older established neighborhoods frequently range from a quarter acre to well over an acre, particularly in communities along the western and northern edges of 78006. Many current new-construction communities are building on somewhat smaller standard lots, with premiums for larger or view lots.

Price Per Square Foot: New vs. Resale

Price per square foot comparisons between new construction and resale in the Hill Country corridor vary significantly by community, home condition, and lot characteristics [4][17]. In general, new construction in master-planned communities tends to command a premium on a per-square-foot basis relative to resale in older neighborhoods — reflecting the cost of builder overhead, incentives, and the "new" premium. However, resale homes in well-maintained, desirable locations with significant lot size or views can compete at similar or higher per-square-foot values. The comparison is not uniform across the market, and buyers should evaluate specific properties rather than relying on broad averages.

What Resale Offers That New Construction Cannot

Resale homes in established Hill Country communities offer several structural advantages: a known HOA with established dues (no surprise assessments during buildout), mature landscaping that provides shade, privacy, and aesthetic value, proven construction performance through Texas weather cycles, and a neighborhood identity that is already defined [15]. For buyers who prioritize these characteristics — and many relocators do — resale is not a compromise. It is a preference for a different set of tradeoffs.

The following is a categorized overview of active new-construction communities, established resale communities, and mixed communities across zip codes 78006 and 78015 [4]. This is not intended as individual community profiles — it is a framework for understanding what characterizes each group and how they fit into the buyer-seller comparison.

Can I negotiate the price with a builder like I can with a resale seller?

Negotiation with builders works differently than with individual sellers [4]. Production builders typically do not reduce the listed base price, because doing so affects comparable sales data for future phases and other buyers in the community. Instead, builders negotiate through incentives: upgraded design center packages, closing cost credits, lot premiums waived, or rate buydowns [6]. The effective discount is real, but it is structured as added value rather than a price cut. With resale sellers, you negotiate on price directly, and the agreed-upon price becomes the comps baseline. Both approaches can produce favorable outcomes — but the negotiation mechanics are fundamentally different.

Do builder incentives actually save me money or are they just marketing?

Builder incentives are real economic value, but the way they affect your finances requires careful reading [6]. A rate buydown reduces your actual monthly payment during the buydown period — that is a genuine savings in the near term. However, after the buydown expires, your payment increases to the full note rate [7]. Closing cost credits reduce your cash-to-close, which is meaningful for buyers managing liquidity. But neither incentive reduces the appraised value of the home, which is what your property taxes are based on [10]. The total cost of the home — purchase price, upgrades, property taxes, and long-term maintenance — is what determines whether incentives translated into lasting savings or simply shifted the timing of cost.

What happens if my new construction home loses value before I move in?

This is a legitimate concern, though it is relatively uncommon in the Hill Country corridor given sustained population growth [1][2]. If the market shifts downward during the six to twelve months between contract signing and closing, the appraised value at closing may come in below the contract price. At that point, the buyer typically has a few options: negotiate a price reduction with the builder, bring additional cash to close, or — in some cases — walk away during the option period if one is in place [15]. In stable or appreciating markets, appreciation during the build period is more common than depreciation. The Hill Country corridor's population growth trajectory has historically supported price stability, but no market is immune to broader economic downturns.

Should I list my resale home before or after a new phase opens in my community?

Timing matters. When a builder opens a new phase in your community or a nearby community, it injects a set of new, competitively priced options — often with incentives — into the buyer pool [5]. If your resale home is priced in the same range as the new phase product, you will face direct competition at the exact moment buyers have fresh alternatives. Listing before the new phase opens gives you the opportunity to capture buyers who have not yet been presented with the new construction option. That said, the timeline of phase openings is not always publicly known in advance, and working with an agent who tracks builder release schedules in your area is the most practical way to plan around this.

Are property taxes different for new construction vs. resale?

The property tax rate applied to your home is determined by the taxing jurisdictions in which the property is located — county, city, school district, and any special districts — not by whether the home is new or resale [10][11][12][13]. However, new construction is typically assessed at a higher value than an older resale home of similar size, because the appraisal reflects the cost of new construction and current finishes. This means the actual tax bill on a new construction home may be higher than on a comparable resale, even at the same tax rate. Additionally, new construction communities may include Municipal Utility District (MUD) or other special district taxes that add to the overall rate [18]. Buyers should verify the full tax rate — including all overlapping jurisdictions and any special districts — before committing.

How do I compare the total cost of ownership between a new build and a resale?

Total cost of ownership goes well beyond the purchase price. For new construction, the total includes the base price, lot premiums, design center upgrades (which can add 10% to 20% or more to the base price [16]), homeowners insurance (which may be lower for newer construction due to updated building codes and materials [15]), property taxes based on the new appraisal [10], and HOA dues (which can be higher in new master-planned communities during the buildout period as the developer funds initial amenities). For resale, the total includes the purchase price, any renovation or repair costs needed to bring the home to your standard, potentially higher insurance on older systems [15], established (and typically transparent) HOA dues, and property taxes based on the current appraisal — which may reflect a lower assessed value than a new build of similar size [10]. The most useful comparison runs both options through a five-to-ten-year cost model that accounts for insurance, taxes, HOA escalations, maintenance reserves, and the post-incentive payment on new construction.

What warranty do I get with new construction in Texas?

Texas recognizes a "1-2-6" warranty structure for residential construction, as established by the Residential Construction Liability Act (RCLA) in Chapter 27 of the Texas Property Code [8]. This framework provides one year for workmanship and materials defects, two years for mechanical and electrical systems (plumbing, HVAC, electrical), and six years for major structural defects [9]. Providing a written warranty meeting these standards can reduce the statute of repose for construction defect claims from ten years to six years after substantial completion [8]. Most production builders provide written warranties that align with this structure, and some offer enhanced coverage through third-party warranty companies. The quality and responsiveness of warranty service varies significantly between builders — independent research through homeowner reviews and direct conversations with residents who have filed warranty claims is more informative than the warranty brochure [9].

Is it worth waiting for a new build or should I buy resale now?

This depends on your timeline, risk tolerance, and what the resale market looks like when you are ready to act [5]. Waiting for a new build means accepting timeline risk (potential delays of weeks to months [15]), construction-period inconvenience, and uncertainty about the final product quality. It also means potentially locking in current builder incentives that may not be available in future phases [6]. Buying resale now means moving into a settled neighborhood with established landscaping, known costs, and no construction timeline to manage — but you may need to budget for updates, and you will not have the design center personalization experience. In a market with strong population growth like the Hill Country corridor [1][2], neither choice is likely to be dramatically wrong over a five-to-ten-year holding period. The better question is which option aligns with your immediate priorities: certainty and speed, or customization and warranty coverage.

Neither new construction nor resale is universally better in the Hill Country corridor. Both options have strong offerings in 78006 and 78015 [4], and the right choice depends on what you prioritize — timeline flexibility, warranty coverage, and modern finishes on one hand, or established character, mature landscaping, and a known neighborhood on the other. Either way, verify whether the property sits within a MUD or other special taxing district — those tax layers can significantly change the total cost of ownership for both new construction and resale.

For buyers, the most important step is understanding the true total cost of each option — not just the sticker price, but the incentives, upgrades, timeline risk, and long-term cost of ownership. If the property relies on a private well or septic system, factor those infrastructure costs into your comparison as well. During due diligence, use the option period to get thorough inspections. If you are a first-time buyer, review Texas first-time buyer programs to understand what assistance may be available. For sellers, the most important step is understanding exactly what you are competing against and positioning your home accordingly. In a market where builders are actively offering financial incentives [6], pricing strategy and presentation are not optional considerations — they are essential.

Both new construction and resale have meaningful roles in this market. The best decisions come from understanding what each actually provides — and what it does not.