#1 Answer to the Housing Shortage: New Construction

The biggest challenge to today’s housing market is the shortage of housing inventory for sale. A normal market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason home prices have continued to appreciate at higher levels than historic averages.

The good news is that builders are now starting to build more homes in lower price ranges.

Builder Confidence is Up

The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.

“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”

Builders are Meeting the Needs of Today’s Purchaser

Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported:

“In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data.”

The WSJ article went on to say:

“Home builders are beginning to shift their focus away from luxury homes and toward homes at lower price points to cater to this burgeoning millennial clientele.”

The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.

#1 Answer to the Housing Shortage: New Construction | Simplifying The Market

Bottom Line

There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand. Builders are finally doing their part to help rectify this situation.  If you are exploring the real estate market for a new build or a resale home, give me a call for more information – J.P. Cook – 602-320-4253.

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8537 E Natal Circle Mesa, AZ 85209

$515,000
3 Beds
2 Baths
2,267 SqFt
Status Active
MLS # 6675592
Property Type Single Family Residence
Price Type --
This Pulte-built former model home has 3 bd, 2 ba, a fully enclosed AZ Room & a 2+ CG. This 1-story, split floor plan home has some nice extras and is ready for its New Owner! It is a must see! The AZ Room and Garage both have Neo Plasma Split AC units to cool them efficiently. Eye catching curb appeal with a Flag Stone walkway, front porch entry area and easy to maintain desert landscaping. The decorative Security Door leads into the dream home with Plantation Shutters & Tile throughout. The formal dining room and Great room offer all the space you need for entertaining. The spacious kitchen has a huge island, pantry, and breakfast bar/area. Your master suite has a wonderful 4ft. deep bay window, separate tub & beautiful, upgraded shower (2023).

10822 N 33rd Place Phoenix, AZ 85028

$515,000
3 Beds
2 Baths
1,884 SqFt
Status Active
MLS # 6677325
Property Type Single Family Residence
Price Type --
Brand new roof!!! Experience comfort & convenience in this incredible single-story home! Situated on a premium corner lot, this gem offers a 2-car garage, a gated courtyard, & a desert front yard w/trees. You'll love the spacious living areas adorned with vaulted ceilings, stylish new tile flooring, a cozy fireplace, & multi-sliders to the back patio. The kitchen has SS appliances, granite counters, rich wood cabinetry, a pantry, & a breakfast room. The main suite features a sitting area w/a bay window, new plush carpeting, & a spa-like bathroom w/dual sinks & a step-in glass shower. Enjoy the dreamy mountain views from the large backyard, complete with a covered patio, seating area w/a fire pit, & pavers. New roof, garage door opener, flooring and paint! No HOA!

5550 N 16th Street Phoenix, AZ 85016

$515,000
2 Beds
2 Baths
1,063 SqFt
Status Active
MLS # 6681958
Property Type Townhouse
Price Type --
This beautifully renovated townhouse/condo featuring all new flooring, kitchen, and bathrooms is surrounded by the best dining and retail establishments. Get outside and enjoy the city parks and hiking trails, as well as golf courses nearby. Directly across the street are the Madison School District and the Art Center. There is no better position than this one—easy access to the 51! Two en suite bedrooms in a split bedroom layout. There are BBQs and a heated pool/spa available as community amenities. There is a two-car direct-entry garage at the house. Ideally situated for quick access to the airport, downtown Phoenix, and the affluent Biltmore neighborhood with luxury restaurants & stores.

19819 W Buchanan Street Buckeye, AZ 85326

$515,000
4 Beds
3 Baths
2,170 SqFt
Status Active
MLS # 6687116
Property Type Single Family Residence
Price Type --
Finished immaculate single story 4 bed 3 bath home in the beautiful neighborhood of Blue Horizons! Large entry hall and 9 foot ceiling invite you into spacious white kitchen with country charm and unique subway tile backsplash, and a large island with breakfast bar. Solar, fully landscaped yard with heat-treated patio surface and a sparkling large play pool! Master is a tranquil retreat spa-like master bath and walk in shower with separate his/her sinks. Plenty of room in the secondary bedrooms for a large family or private den/craft room and guest rooms with separate bathrooms for each. In-wall doggie door and fenced off dog run with real grass, pavers in the right places. Bring your furniture and suitcases a must see!!

2511 W Queen Creek Road Chandler, AZ 85248

$515,000
2 Beds
2 Baths
1,346 SqFt
Status Active
MLS # 6693596
Property Type Apartment
Price Type --
This condominium combines luxury living with convenience, offering a sophisticated lifestyle with easy access to work, leisure, and everyday needs. It's ideal for professionals looking for a balance between work and personal life in a vibrant community setting. Views of city lights and mountains, enhancing the living experience. New carpeting in the main bedroom. Blackout drapes and drapery rods in the main bedroom for privacy and light control. Custom paint in various parts of the unit including the kitchen, entry, main bedroom and bath, and guest bath. Light filtering drapes in the living room that allow natural light while providing privacy. Custom California Closets in both the main and guest bedrooms for optimized storage. Pull-out shelves in kitchen cabinets and a dual garbage can pull-out system for convenience. Newly installed stacked LG Washer & Dryer in the laundry closet, creating additional shelf space. Water softener and water filtration system at the kitchen sink connected to the ice maker in the refrigerator for clean, purified water. Walk-in pantry for ample food storage. Low maintenance LVP flooring that is durable and easy to clean. Two (2) parking spaces with storage cage for additional security or storage. This extensive list of features clearly positions the property as a luxurious and convenient choice for prospective buyers offering comfort, efficiency, and stunning views in a prime location. Proximity to Dining and Entertainment: The ability to walk to nearby restaurants, entertainment venues, and a farmer's market enhances the living experience by providing leisure and shopping options right at your doorstep. Located close to significant tech companies like Intel and Northrop Grumman, and within the Price technology corridor, which could be particularly attractive to professionals working within these sectors. This condominium combines luxury living with convenience, offering a sophisticated lifestyle with easy access to work, leisure, and everyday needs. It's ideal for professionals looking for a balance between work and personal life in a vibrant community setting.

2304 W Catalina Avenue Mesa, AZ 85202

$515,000
3 Beds
2 Baths
1,691 SqFt
Status Active
MLS # 6680808
Property Type Single Family Residence
Price Type --
Home, sweet home! This highly maintained single-level home on a coveted corner lot awaits you! Displaying brick accents, a large front yard, a 2-car garage, an RV gate, & an extended driveway. Discover an open floor layout adorned w/recessed lighting t/out, wood-style flooring, & French doors leading to the back patio. The well-kept kitchen is fully equipped w/an electric cooktop, wall ovens, & granite counters. Ample wood cabinetry, striking mosaic tile backsplash, & a breakfast bar elevate the space. Sliding barn doors open to a sizable den ideal for a hobby space. The main bedroom offers a mirrored door closet, a private bathroom w/dual sinks, & direct backyard access. Have fun in the vast backyard w/a covered patio, children's playground, artificial turf, & a diving pool!

913 N Brown Avenue Casa Grande, AZ 85122

$515,000
5 Beds
3 Baths
1,950 SqFt
Status Active
MLS # 6696481
Property Type Single Family Residence
Price Type --
Step inside this beautifully updated property to discover a spacious and bright living area. The well appointed kitchen boasts granite countertops, new appliances and new flooring throughout the entire home. Retreat to the comfortable bedrooms, each offering a peaceful atmosphere and ample closet space. The beautifully landscaped front yard welcomes you home, while the covered patio provides a great space for outdoor relaxation and evening barbecues. The spacious backyard includes an accessory dwelling unit (ADU) in the back, perfect for hosting guests, using as a home office, or renting out for additional income. Conveniently located near shopping, dining, and entertainment options, this home is also close to schools, parks, and recreational facilities, with easy access to major highways for a quick commute to neighboring cities. Don't miss out on the opportunity to make this wonderful house your new home!

26842 N 66th Lane Phoenix, AZ 85083

$515,000 - 3Br/2Ba -  for Sale in Eagle Highlands North, Phoenix
Open House
$515,000
3 Beds
2 Baths
1,845 SqFt
Status Active
MLS # 6689581
Property Type Single Family Residence
Price Type --
Gorgeous split floorplan home in beautifully maintained gated community of Eagle Highlands. Nearby Peoria Regional Preserve & Paloma Community Park offer endless recreational opportunities! Home is on spacious lot w/ a peaceful, private backyard. Ten ft ceilings & lots of natural light give home an open, spacious feel. Large, comfortable living room w beautiful built in entertainment center leads directly to back patio. Bright & spacious eat-in kitchen, rich granite counters, gleaming SS appliances. Large, luxurious primary bedroom w/ spacious adjacent sitting area or office space. Elegant primary bathroom, dual sinks, separate tub & shower, huge walk in closet w/ custom storage. Secondary bedrooms both very spacious. Beautifully landscaped backyard w covered patio & great mountain views! Home has rich, beautiful wood floors throughout most of home, and plush carpet in the two secondary bedrooms. Large laundry room with built in shelving, and spacious two car garage. Primary bedroom is currently configured as a home office, with the adjacent sitting room serving as a bedroom! The sitting room could be a quiet reading room, exercise space, or incredible home office. The possibilities are endless. Don't miss the opportunity to see this beautiful home today!

7709 N 18th Avenue Phoenix, AZ 85021

$515,000 - 3Br/2Ba -  for Sale in Bristol Court, Phoenix
Open House
$515,000
3 Beds
2 Baths
1,349 SqFt
Status Active
MLS # 6687048
Property Type Single Family Residence
Price Type --
Welcome home to this charming property that boasts a cozy fireplace, a soothing natural color palette, and a spacious center island in the kitchen. You'll love the nice backsplash in the kitchen, and the other rooms offer flexible living space to suit your needs. The primary bathroom features good under sink storage, and the fenced in backyard is perfect for privacy. Enjoy the private in ground pool and covered sitting area in the backyard, ideal for outdoor entertaining. With fresh interior paint and new flooring throughout the home. Don't miss out on this wonderful opportunity!

1963 E Villa Theresa Drive Phoenix, AZ 85022

$514,999
4 Beds
2.5 Baths
2,039 SqFt
Status Active
MLS # 6687314
Property Type Single Family Residence
Price Type --
This awesome Cul De Sac home has 4 bedroom - 2 ½ baths, just minutes from the 51, 17 and 101 freeways. This home has a vaulted ceiling in the Great room flowing into the Kitchen with Granite Counters and Breakfast bar. Remodeled ½ bath downstairs for you guest to use. The Backyard is a well groomed space with a built in BBQ area and wide paved area on the side for seating. All appliance are a year old and stay with the house. Under stair storage was converted to a pantry. Updated in 2018, 14 SEER Variable Speed Trane HVAC system, Rheem smart water heater, and Lux Geo smart thermostat. Security system installed but not monitored. Garage door and dual spring set up new 2 years ago.

40363 W Wade Drive Maricopa, AZ 85138

$514,995
5 Beds
3 Baths
3,030 SqFt
Status Active
MLS # 6693668
Property Type Single Family Residence
Price Type --
The Main floor of the inviting Ammolite plan offers a great room and well appointed kitchen with center island and roomy pantry. Upstairs, discover a central loft, a laundry and three secondary bedrooms with a shared bath. A lavish primary suite boasts an expansive walk-in closet and private bath rounds out the floor. You'll love the professionally curated fixtures and finishes selected by our design team.

19555 W Jamestown Road Buckeye, AZ 85396

$514,995
4 Beds
3 Baths
2,570 SqFt
Status Active
MLS # 6686620
Property Type Single Family Residence
Price Type --
This home is a Celeste 4 Bedroom + Study, 3 Bathroom, 2 Car Garage

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