Of course they have a choice. You don't have to buy a new KB or Toll Brothers home and you don't have to buy a home in a new development. Around where I live even the new developments is just the builders buying and tearing down old homes. If none of the existing inventory on the market suits your needs, or if you really want new construction, you can either buy an empty lot or buy an old house and tear it down. Also, if you have the budget to pay for it the builders can go to great lengths to customize even a cookie cutter home.