When searching for a new place to live, newly built homes might not be the first option that comes to mind. However, with a growing inventory of brand-new homes and a focus on more affordable options, this could be the key to finding your perfect home. Here’s why you should take a closer look at new builds and how working with an agent can help you find one that fits your needs and budget.

1. There Are More Newly Built Homes on the Market

It’s important to understand the two main types of homes available:

• Newly Built Homes – Homes recently constructed or currently under construction.

• Existing Homes – Homes that have previously been lived in and are for resale.

Currently, the inventory of existing homes for sale remains low. If you’ve been frustrated by limited options, expanding your search to include newly built homes could open up exciting opportunities. In fact, newly built homes now make up a larger portion of the housing market than they have in decades (see graph below):

From 1983 to 2019, newly built homes made up only 13% of the total housing inventory. Today, that number has jumped to 28.8%, according to recent data.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performances in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.”

Builders are increasing new home construction to meet demand, but they’re doing so responsibly. After over a decade of underbuilding, these efforts are helping to balance the market and provide buyers like you with more options.

2. Newly Built Homes Are Becoming More Affordable

You might be wondering if newly built homes are within your budget. The good news is that the average cost of new construction homes has actually come down compared to a year ago.

Why is this happening? Builders understand that affordability is a top concern for today’s buyers. In response, they’re focusing on constructing smaller homes at lower price points to meet demand. As Realtor.com highlights:

“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.”

This shift allows buyers to explore brand-new homes that are not only modern and efficient but also more budget-friendly.

It’s important to note that purchasing a newly built home comes with unique considerations. Builder contracts differ from standard resale agreements, so partnering with a local real estate agent is essential. An experienced agent can help you navigate the builder’s fine print, assess the builder’s reputation, and ensure you’re making a smart investment.

Bottom Line

If you’re struggling to find the perfect home, newly built homes may provide the solution. With more affordable new construction homes on the market, this could be your opportunity to bring your homeownership dreams to life. Let’s connect today so we can explore the new builds in your area and find the right fit for you.