The Top 2 Reasons To Look at Newly Built Homes

When planning a move, newly built homes might not be your first thought. However, with an increasing number of brand-new properties on the market and builders focusing on more affordable, smaller options, they could be the key to successfully navigating your homebuying journey.

Here’s why new builds deserve your attention—and how an agent can help you find one that fits your needs and budget:

1. More Newly Built Homes Are Available Right Now

Let’s start by understanding the types of homes available. A newly built home is one that’s just completed or still under construction, while an existing home has been previously owned and occupied.

Currently, the supply of existing homes is limited. If you’re struggling to find a home you love due to this shortage, expanding your search to include brand-new builds can significantly widen your options. In fact, there are more newly built homes on the market now than in a typical year (see graph below).

From 1983 to 2019, newly built homes accounted for just 13% of the total housing inventory. Today, that figure has surged to 28.8%, according to the latest data.

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

"While existing home sales remain at low levels, newly constructed home sales are on track to achieve one of their best annual performances in 15 years. Builders have been consistently adding to inventory, now representing about one-third of the total market."

Although the rise in new home construction is promising, it’s important to note that builders are not overbuilding. Instead, they’re addressing a shortage caused by more than a decade of underbuilding. Demand still far exceeds supply, but this increase in newly built homes gives buyers like you more options to consider.

2. Newly Built Homes Are Becoming More Affordable

Wondering if a new build is right for you—or if it fits your budget? Here’s some good news: the average cost of newly built homes has decreased compared to last year.

Why? Builders recognize that affordability is a top concern for today’s buyers. As a result, they’re focusing on constructing smaller homes at lower price points that are more accessible. According to Realtor.com:

"Builders are prioritizing smaller, more affordable homes, creating opportunities for buyers to find newly constructed options within their budgets."

Keep in mind that buying a newly built home differs from purchasing an existing one. Builder contracts often include unique terms and conditions. Partnering with a local agent who understands the market, builder reputations, and contract details can help you navigate the process with confidence.

Bottom Line

Depending on your needs, preferences, and budget, a newly built home could be the perfect opportunity to turn your homebuying dreams into reality. With more options available and builders focusing on affordability, now may be the ideal time to explore the benefits of purchasing a brand-new home. Whether you’re seeking modern amenities, energy efficiency, or a blank slate to personalize, a new build might just align perfectly with your vision.

If you’re considering this path, partnering with a knowledgeable agent is essential. They can provide valuable insights into local builder offerings, guide you through the unique aspects of new construction contracts, and ensure you find a home that suits your lifestyle and financial goals. Don’t miss out—connect with an agent today to see what exciting new homes are available in your area!