If you're feeling like buying a home right now is a stretch, you're not alone. But here’s some positive news for you: builders are shifting gears and focusing on constructing smaller, more affordable homes—and even offering some pretty tempting incentives. This could be the perfect time to find a home that fits your budget!
Builders Are Going Small
Remember when everyone was looking for bigger homes during the pandemic? We were all about extra space for home offices, gyms, and virtual school setups. Builders were right there with us, rolling out larger homes to meet that demand. But fast forward to today, and with the rising cost of homes, builders are flipping the script.
They're now focusing on smaller single-family homes, and there's solid data backing this trend. According to the Census, builders have been steadily moving towards these more compact options over the past couple of years. Why? It’s simple—builders follow the money. And right now, buyers are prioritizing affordability above all else.
Smaller homes come with a smaller price tag, and that’s music to the ears of both buyers and builders. As the National Association of Home Builders (NAHB) reports:
“Home buyers are looking for homes around 2,070 square feet, compared to 2,260 20 years ago.”
And Zillow’s Senior Economist, Orphe Divounguy, adds:
“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."
Why a New Home Could Be Your Budget’s Best Friend
If you’ve been scouring listings and nothing seems to match your price range, it might be time to take a peek at new construction homes. These smaller new builds might offer more than just a manageable price point. Builders are also throwing in perks like price reductions and mortgage rate buy-downs. That means more savings in the long run!
In fact, the latest data from Zonda shows that over half of builders are offering incentives, with mortgage rate buy-downs being one of the big ones. That could translate into a lower monthly mortgage payment for you, which is huge. As John Burns, CEO of John Burns Research & Consulting, says:
“The monthly payment matters more than anything else and builders have responded with smaller, more efficient homes.”
Plus, let’s not forget one of the best parts of new construction—you get all-new everything! Less maintenance, modern features, and the latest energy-efficient systems mean you’ll be saving even more in the future. Definitely worth checking out, right?
Bottom Line
With builders focusing on smaller homes and offering incentives, there are more affordable options out there than you might think. Ready to explore what’s available in your area? Let’s chat and find a new home that’s right for you!
