Affordability may be getting better, but buying a home still feels challenging. The good news? Builders are now concentrating on constructing smaller homes and providing valuable incentives to buyers. These changes can really assist you if you're concerned about finding a home that fits your budget.

Builders Are Building Smaller Homes 

During the pandemic, many homebuyers sought larger homes, and plenty of them had the budget to make it happen. Builders took notice and started creating bigger spaces to accommodate needs like remote work, home gyms, and extra rooms for kids attending virtual school.

With affordability becoming increasingly challenging, builders are shifting their attention to smaller single-family homes. Census data highlights how notable this trend toward smaller new homes has been over the past few years.

With affordability being such a concern these days, builders are shifting their attention to smaller single-family homes. Recent data from the Census clearly highlights how pronounced this trend toward smaller new homes has become over the past couple of years.

“ “. . . home buyers are looking for homes around 2,070 square feet, compared to 2,260 20 years ago.”
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— National Association of Home Builders (NAHB)

According to Orphe Divounguy, a Senior Economist at Zillow:

““Not only are cash-strapped buyers continually seeking out lower-cost options, but developers are changing what type and size of home they’re producing to try and meet that need.”
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— Orphe Divounguy, Senior Economist

How a Newly Built Home Can Help You Achieve Your Homebuying Goals

If you're struggling to find a home within your budget, consider exploring brand-new houses with a smaller footprint. You might discover additional benefits that enhance affordability, such as price reductions or mortgage rate buy-downs.

The latest data from Zonda shows that over half of builders are providing incentives, including options like mortgage rate buydowns. These incentives can potentially reduce your future monthly housing payments. John Burns, CEO of John Burns Research & Consulting, emphasizes this point.

““The monthly payment matters more than anything else and builders have responded with smaller, more efficient homes.”
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— John Burns, CEO of John Burns Research & Consulting

With new home construction, you’ll enjoy all new appliances and systems, spend less time on maintenance, and benefit from the latest features. That definitely sounds worth considering, doesn’t it?

Bottom Line

With builders turning their attention to smaller homes, you might find more budget-friendly choices now. If you're considering buying a home soon, let’s connect to explore what's available in your preferred area.