With the residential real estate market still trying to overcome high home prices, inventory issues and not-so-great mortgage rates, buying a new home further from job hubs than many would prefer has always been an option. Now, according to a new report from real estate market research firm John Burns Research & Consulting, it’s become even more problematic as fuel prices have risen due mostly to the Middle East conflict.
New homes, ones built in 2020 and later, are usually farther from cities and job hubs. Buyers spend nearly half an hour driving each way, 12% more than the usual homeowner.
New-home communities, particularly less expensive entry-level ones, are often found in locations far from city centers and major job hubs, where cheaper land is the only way to make the numbers work, according to the report. Buyers who intend to “drive-till-they-qualify” often trade lower mortgage payments for longer commutes, and rising fuel costs are making those commutes more expensive.
Overall, finding a home that is convenient for work has become less of a factor for buyers since the pandemic, according to surveys by the National Association of Realtors®. In 2022, 42% of buyers—and 71% of young buyers—said convenience for their job was a factor in their housing choices.
In 2025, that fell dramatically, to 31% of all buyers, and 50% of young buyers.
Being able to work remotely is clearly a factor, and provides some relief in this new environment: Nearly 20% of owners with new homes worked from home, defined as doing so at least three days a week. But lower-level employees were less likely to have the option of remote work than those further along in their careers.
Key takeaways
- Pain at the pump for new homebuyers: Owners of newly built homes commute 10%-15% longer than the average homeowner, which means higher transportation costs when gas prices spike.
- Gas prices are weighing on consumer confidence: Builders and agents in the company’s surveys flag high fuel costs as a fresh headwind on top of already-poor consumer sentiment.
- Sun Belt and exurban markets most exposed: Affordability-driven markets like Stockton, Greeley, Tampa and Dallas show the largest commute-time gaps for new construction owners.
