#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.

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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Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

1650 E Ponderosa Parkway Flagstaff, AZ 86001

$517,485

2 Beds

2 Baths

1,220 SqFt

Status Active

MLS # 6634222

Property Type Apartment

Price Type --

POPULAR 2-bedroom on 2nd floor. Ponderosa Parkway is located close to downtown and NAU. The Urban Trail system will take you all over Flagstaff on foot or bike in minutes! FIRST RESPONDERS & MILITARY receive additional incentives! Call for your private tour today! Visit our Sales office/Model Home in Bldg. 3, Unit 111

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4 Walking Cane Ranch Road Flagstaff, AZ 86004

$517,350

3 Beds

2 Baths

1,456 SqFt

Status Active

MLS # 6672920

Property Type Single Family Residence

Price Type --

This quiet property includes 40 acres of fully fenced pinon-juniper land a number of miles northeast of Winona, AZ. Reached by a country road, here is comfortable off-grid living! The primary residence has 3 bedrooms, 2 full baths, and includes two full-length porches overlooking the San Francisco Peaks and other nearby mountains on one side and the Little Colorado River Valley and Painted Desert on the other. Inside, an alcove can be customized as desired. An efficient wood-burning stove keeps the whole house comfortable on brisk, high-desert nights, while, if ever needed, a thermostatically-controlled, forced-air propane furnace provides backup heating. The kitchen and utility room include all appliances. Vinyl flooring in the kitchen, pantry, utility, and bathrooms gives way to carpet throughout the rest of the house. The split floor-plan provides privacy, while two of three of the bedrooms have walk-in closets for storage, including the master unit, whose bathroom includes a double vanity. Across the driveway, a 40'x50' Quonset hut can hold six vehicles with enough room for a workshop, firewood storage, etc. You'll have two underground water cisterns, one with a 7,500-gallon capacity for hauled water to be used in the house and another with 10,000-gallons of rain catchment pumped by the automatic watering system to irrigate the surrounding trees. A final, but perhaps most important, feature of the property is the robust solar electricity system. You'll enjoy glimpses of a wide variety of wildlife, and furthermore, cultural landmarks of the Sinagua people.

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18450 W Villa Hermosa Lane Surprise, AZ 85387

$517,247

5 Beds

4 Baths

2,868 SqFt

Status Active

MLS # 6687002

Property Type Single Family Residence

Price Type --

Completed New Build Home. Below Market Interest Rate Financing Available. 5 Bedrooms, 4 Baths, Study, & Loft, 3 Car Garage with 8ft Garage Door. VERY Open Floor Plan. GOURMET Kitchen with Island and walk in Pantry. Tile throughout, carpet in bedrooms only. Patio on back of home. This home is located in North Copper Canyon that offers a community pool and many other amenities.

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29343 N 136th Lane Peoria, AZ 85383

Open House

$517,186

3 Beds

3 Baths

1,842 SqFt

Status Active

MLS # 6664139

Property Type Single Family Residence

Price Type --

This quick move-in home is ready now at Sereno. This property is loaded full of options such as a kitchen with stainless steel appliances, 8 ft. doors, upgraded tile floors, and much more. Sereno features beautiful natural desert and walking trails. Please stop in the sales office to view.

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6134 W Orchid Lane Glendale, AZ 85302

$517,000

5 Beds

2.5 Baths

2,773 SqFt

Status Active

MLS # 6671564

Property Type Single Family Residence

Price Type --

A must see! Big beautiful home with 5 spacious bedrooms and 2 3/4 bathrooms with a huge loft upstairs, large kitchen island, kitchen backsplash, and a meticulously maintained backyard that is perfect for entertaining.

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11477 W Deanne Drive Youngtown, AZ 85363

$516,900

5 Beds

3 Baths

2,486 SqFt

Status Active

MLS # 6677095

Property Type Single Family Residence

Price Type --

Two-story, 5 bedroom and 3 bathroom home that is sure to be the home of your dreams! The Thatcher plan showcases a fully fenced backyard, covered front porch and covered back patio, as well as front yard landscaping. The chef-ready kitchen comes complete with a large kitchen island, expansive granite countertops, and stainless steel appliances. Also located on the first floor is a large family room, formal dining room, and private guest room. Upstairs, the luxurious master suite includes an impressive walk-in closet. Also included on the second floor are 3 more spacious bedrooms, a full bath with double sinks and a large loft. Enjoy the view of the White Tank Mountains from your NEW home! Features cultured stone on front of home.

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5313 W Notch Hill Road Laveen, AZ 85339

$516,875

4 Beds

3 Baths

2,146 SqFt

Status Active

MLS # 6655298

Property Type Single Family Residence

Price Type --

Up to 3% of total purchase price towards closing costs incentive offer. Additional eligibility and limited time restrictions apply. MLS#6655298 REPRESENTATIVE PHOTOS ADDED. April Completion! THe Sterling at Tierra Montana Encore. This expansive one-story residence starts with a charming front porch entry. The foyer welcomes guests with its bright and airy ambiance, and just steps away is a spacious guest bedroom adorned with large windows and a nearby full bathroom. Moving beyond the foyer, you'll be delighted by the open-concept kitchen, showcasing 42'' upper cabinetry, quartz countertops, an island, and a dining room that seamlessly flows into the great room, offering a stunning view of the covered patio. Two secondary bedrooms share a bath conveniently located across the hall from the dining area. The owner's suite is tucked in the back of the home, just across the hall from the convenient laundry room. Within walking distance to K-8 school. Tierra Montana is nestled near South Mountain and the Estrella Mountains with close proximity to Loop 202.

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3218 N 37th Street Phoenix, AZ 85018

$516,000

3 Beds

2 Baths

1,296 SqFt

Status Active

MLS # 6622683

Property Type Single Family Residence

Price Type --

MOTIVATED SELLER!!! This well-maintained property located in Citrus Acres/Arcadia Lite, brings you comfort, generous space, and a rare two-car garage—a standout feature in this neighborhood—all without the restrictions of an HOA. Opportunity for expansion with the possibility to construct multi-dwelling units or an ADU, offering you even more flexibility and potential for this property! Situated on a spacious lot, you'll appreciate the generous backyard, side yard, and RV space for all your outdoor needs. The home has been thoughtfully updated to ensure a hassle-free move-in experience. In 2021, new windows were installed, providing natural light and energy efficiency. In October 2023, a brand-new air conditioning system was installed, for year-round comfort. The bathrooms received a refresh in 2022. In Oct 2023, the garage was freshly painted. The fascia boards were replaced, a tasteful upgrade completed in December 2023. Additonally, a new Rheem electric water heater installed April 2024 (9 yr warranty)

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5527 W Carson Road Laveen, AZ 85339

Open House

$516,000

3 Beds

2 Baths

2,224 SqFt

Status Active

MLS # 6674253

Property Type Single Family Residence

Price Type --

Single Story Home in Gated Cottonfields Community, Original Owner-Pride in Ownership. Upgraded Island Kitchen, Granite Countertops, Extended Kitchen Cabinets, pull out drawers, Crown molding. Pantry, 10foot + Ceilings throughout, All appliances included. Split Floorplan. Upgraded Primary Tiled Shower, dual sinks, Plantation shutters, Built in ceiling speakers in Primary Bedroom, Great Room &, Outdoor Patio. Gorgeous Landscaped Backyard with Private Hot Tub, Solar Panels=Great Utility Savings , Covered Patio. Cabinets in Garage along with overheard storage area. Easy access to 202 South Mountain Freeway and future restaurants/shopping at Laveen Spectrum & Laveen Park Place. Community includes 2 children's playgrounds, greenbelts, lake in subdivision

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19624 W Cartwright Avenue Buckeye, AZ 85396

$515,995

3 Beds

2.5 Baths

2,400 SqFt

Status Active

MLS # 6686742

Property Type Single Family Residence

Price Type --

Lot 108 is the Celeste 3 Bedroom+ Study, 2.5 Bathroom, 3 Car Garage

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40990 W Agave Road Maricopa, AZ 85138

$515,990

4 Beds

3 Baths

2,142 SqFt

Status Active

MLS # 6399878

Property Type Single Family Residence

Price Type --

QUICK MOVE-IN! It's the Castellano floor plan with a multi slide door off the great room. Large walk-in shower at owner's bath with ceramic tile surrounds. Designer gas appliance package, Sonoma Maple ''Linen-Off white'' cabinets with 42'' uppers, 4 roll outs in pantry, 1 trash drawer with two bins and 4 1/4'' crown molding in kitchen. Evening gray quartz countertops in kitchen and on the enhanced kitchen island with matching backsplash. 8' interior doors throughout. 6x24 Norwood oak plank tile in all areas of the home except bedrooms/closets. 8' garage door for those high profile vehicles and a garage service door and so much more. Seller to write contract and to verify all information with onsite agents. Water Company is Santa Cruz Water Company and Sewer is Palo Verde Utilities Company.

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8120 W Voltaire Avenue Peoria, AZ 85381

New

$515,000

3 Beds

2 Baths

1,821 SqFt

Status Active

MLS # 6697729

Property Type Single Family Residence

Price Type --

Well maintained single level home w/ private backyard Oasis and updates galore! NO HOA! Gorgeous interior boasts a combined living & dining room and a large great room w/ high vaulted ceilings, gas fireplace & wood-looking flooring. Open-concept kitchen features LED Lighting, a 48'' dual fuel range, double ovens, hood, ss appliances, quartz counters with full height splash, plenty of cabinetry and a large island with a breakfast bar, and a breakfast nook. Romantic Master suite offers high vaulted ceilings, bath with dual sinks, walk-in shower and private exit to the patio. Retreat outside to your fully fenced, spacious private backyard with covered patio, gazebo with Built in BBQ, bench seat, sparkling pool perfect for entertaining family and friends; yet still a breeze to maintain! This is a 3 bedroom with a study / office. A 2-car garage, w/ storage and one RV Gate with a poured Concrete slab with trailer Plug in. Other upgrades include a 10 by 14 foot Shed and a ring camera security system in front. Utility sink in garage and attic with extra insulation. Easy access to freeways, shopping, and restaurants. Don't wait! Add this beautiful home to your MUST SEE list today!

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