{"id":1335,"date":"2024-04-11T18:07:58","date_gmt":"2024-04-11T18:07:58","guid":{"rendered":"https:\/\/johnsonteamrealestate.com\/?p=1335"},"modified":"2024-05-08T18:39:52","modified_gmt":"2024-05-08T18:39:52","slug":"builders-are-building-smaller-homes","status":"publish","type":"post","link":"https:\/\/johnsonteamrealestate.com\/index.php\/2024\/04\/11\/builders-are-building-smaller-homes\/","title":{"rendered":"Builders Are Building Smaller Homes"},"content":{"rendered":"\n
\"\"\/<\/figure>\n\n\n\n

There\u2019s no arguing it, affordability<\/a> is still tight. And if you\u2019re trying to buy a home<\/a>, that may mean you need to look at smaller houses to find one that\u2019s still in your budget. But there is a silver lining: builders are focused on building these smaller homes right now and they\u2019re offering incentives. And that can help give you more options<\/a> that fit the bill.<\/p>\n\n\n\n

Newly Built Homes Are Trending Smaller<\/strong><\/h4>\n\n\n\n

During the pandemic, homebuyers<\/a> wanted (and could afford) larger homes \u2013 and builders delivered. They focused on homes that were bigger, so people had more space for things like working from home, having a home gym, bonus rooms for virtual school, and more.<\/p>\n\n\n\n

But with the affordability challenges buyers are facing today, builders are increasingly shifting their attention to bringing smaller single-family homes to the market. The graph below uses data<\/a> from the Census<\/em> to show how this trend has evolved over the last few years:<\/p>\n\n\n\n

\"a<\/a><\/figure>\n\n\n\n

So, why the shift to less square footage? It\u2019s simple. Builders want to build what they know will sell. Basically, they focus on where the demand is strongest. And once mortgage rates started climbing and consumers felt the challenges of affordability creeping in, it became clear there was (and is) a very real need for smaller homes. As the National Association of Home Builders<\/em> (NAHB) explains<\/a>:<\/p>\n\n\n\n

\n

\u201cAfter a brief increase during the post-covid building boom,<\/em> home size is trending lower and will likely continue to do so as housing affordability remains constrained<\/em><\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

A recent article in the Real Deal <\/em>says<\/a> this about how this helps buyers:<\/p>\n\n\n\n

\n

\u201c<\/em>Even a slightly smaller home can be thousands of dollars cheaper \u2014 for both builders and buyers. . . <\/em><\/strong>In response to affordability challenges, major homebuilders are shifting priorities away from the big ticket homes and towards the cheaper set.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

What This Means for You<\/strong><\/h4>\n\n\n\n

If you\u2019re having a hard time finding something in your budget, it may help to look at smaller homes. And, if you consider new builds specifically, you may find a few other fringe benefits that can help on the affordability front \u2013 like price reductions or mortgage rate buy-downs. As NAHB says<\/a>:<\/p>\n\n\n\n

\n

\u201cMore than one-third of builders cut home prices in 2023. <\/em>NAHB expects builders to continue offering smaller homes and more affordable designs as housing affordability remains a barrier to homeownership<\/em><\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

As Charlie Bilello, Chief Market Strategist, at Creative Planning<\/em>, explains<\/a>:<\/p>\n\n\n\n

\n

\u201cHomebuilders are adapting to the lowest affordability on record by building smaller homes and <\/em>offering more incentives\/price cuts.<\/em><\/strong> The median square footage of a new single-family home in the US has moved down to its lowest level since 2010.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

If you explore these options, you\u2019ll also get brand new everything, enjoy a house with fewer maintenance needs, and some of the latest features available. That\u2019s worth looking into, right? <\/p>\n\n\n\n

Bottom Line<\/h3>\n\n\n\n

Builders building smaller homes can give you more affordable options at a time when you may really need it. If you\u2019re hoping to buy a home soon, let\u2019s connect to look at what\u2019s available in our area. Contact us today by calling 360.303.2734 or emailing Info@JohnsonTeamRealEstate.com.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s no arguing it, affordability is still tight. And if you\u2019re trying to buy a home, that may mean you need to look at smaller houses to find one that\u2019s still in your budget. But there is a silver lining: builders are focused on building these smaller homes right now and they\u2019re offering incentives. And that can help […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-1335","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"entry"},"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"fawn","author_link":"https:\/\/johnsonteamrealestate.com\/index.php\/author\/fawn\/"},"_links":{"self":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/1335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/comments?post=1335"}],"version-history":[{"count":1,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/1335\/revisions"}],"predecessor-version":[{"id":1336,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/1335\/revisions\/1336"}],"wp:attachment":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/media?parent=1335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/categories?post=1335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/tags?post=1335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}