Affordability is definitely a challenge given the current mortgage rates and home prices. This situation might have you feeling anxious about buying a home. However, if you don’t require a lot of space, you might be surprised to discover that new home communities can offer more budget-friendly options than you expected.

Builders Are Building Smaller Homes 

Smaller homes usually mean lower prices, so buyers are looking more at properties with less square footage. In response to this trend, builders are also adapting to meet that demand. As U.S. News points out:

“The combination of higher home prices and mortgage rates has strained a lot of people’s budgets. And that’s something builders recognize. To this end, they may be leaning toward smaller spaces . . .That, in turn, can lead to savings for buyers.”
— U.S. News

Recent Census data indicates that over the past few years, there’s been a noticeable trend among builders towards smaller, single-family homes.

The graph indicates that the average size of a new home has decreased from 2,309 square feet in Q3 2022 to 2,171 square feet in Q3 2024, which is a reduction of 138 square feet.

Builders typically focus on creating homes that are likely to sell. Right now, the top priority for homebuyers is finding more affordable options to tackle today’s affordability challenges. As highlighted by Multi-Housing News:

“The growing trend toward smaller homes is evident. These homes are less expensive to build and more attainable for many middle-income families, meeting both housing needs and modern lifestyle preferences.”
— Multi-Housing News

The Benefits of These Brand-New Homes

If you're struggling to find a home that fits your budget, consider looking into newly built homes that have a smaller footprint.

Newly built homes have everything fresh and new, which means they require less maintenance. Plus, they often come with the latest features like energy-efficient appliances and HVAC systems. This can lead to savings on both repair costs and monthly utility bills. Overall, it’s a great deal.

Bottom Line

Today's builders are concentrating on creating smaller homes that come with lower price tags. This shift might open up more options for you to find a home that suits your budget. If you're thinking about buying soon, let's connect and check out what's available in your area so we can