If you live in an area that has limited land for new development, many builders have decided that it is better to sell fewer new homes at a higher price, than to build more homes at lower prices. The higher-end housing market is impacted less by the economy and there are much better margins on upscale amenities. Once in the builder’s design center, buyers are presented with many compelling upgrade opportunities. Many buyers end up paying about 20 percent more for a new home than they would an existing one.