It’s no secret that affordability is tough with where mortgage rates and home prices are right now. And that may have you worried about how you’ll be able to buy a home. But, if you don’t need a ton of space, you may find you have more cost-effective options in an unexpected place: new home communities.
Builders Are Building Smaller Homes
Since smaller homes typically come with smaller price tags, buyers have turned their attention to homes with less square footage. Builders have shifted their attention to building smaller homes to capitalize on that demand.
Data from the Census shows the overall builder trend toward smaller, single-family homes has been over the last couple of years.
As the graph shows, the average size of a brand-new home has dropped from 2,300 square feet in Q3 2022 to 2,171 square feet in Q3 2024. That’s a difference of 138 square feet.
At the end of the day, builders want to build what they know will sell. And the number one thing homebuyers are looking for right now is less expensive options to help offset today’s affordability challenges.
The Benefits of These Brand-New Homes
So, if you are having trouble finding a home in your budget, it might be worth exploring newly built homes with a smaller footprint.
Not to mention, since newly built homes come with brand new everything, they have fewer maintenance needs. They also have the latest features available, like energy-efficient appliances and HVAC. That will help you save on repair costs and your monthly utility bills.
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