With rising mortgage rates and home prices, affordability is a challenge for many buyers. But if you don’t need a large home, the new construction trend may offer a more budget-friendly path to homeownership.
Homebuilders Are Shifting to Smaller Homes
Because smaller homes generally come with lower price tags, buyers are increasingly looking at more compact options—and builders are responding to that demand. As U.S. News explains:
“The combination of higher home prices and mortgage rates has strained a lot of people’s budgets. And that’s something builders recognize. To this end, they may be leaning toward smaller spaces . . . That, in turn, can lead to savings for buyers.”
Data from the U.S. Census shows that, over the past two years, the average size of newly built single-family homes has decreased. In Q3 2022, the average was 2,309 square feet, while by Q3 2024, it dropped to 2,171 square feet—a difference of 138 square feet.
This shift allows builders to create more affordable options that meet today’s buyers' needs. Multi-Housing News highlights this trend:
“The growing trend toward smaller homes is evident. These homes are less expensive to build and more attainable for many middle-income families, meeting both housing needs and modern lifestyle preferences.”
Why a Smaller, Brand-New Home Could Be a Great Fit for You
If you're struggling to find an affordable home, exploring newly built, smaller homes might be the solution. Plus, new construction offers perks like:✔ Lower maintenance – Everything is brand new, meaning fewer repairs✔ Energy-efficient features – New homes often include modern HVAC systems and appliances, saving you money on utilities✔ Customizable options – Many builders allow you to personalize finishes and layouts
Let’s Find Your Perfect Home!
Builders are focusing on smaller, more affordable homes, creating new opportunities for buyers like you. If you’re thinking about making a move, give me, Teresa Hill, a call today! I’d love to help you find the perfect home that fits your lifestyle and budget.
*Information sourced from Multi-Housing News, NAR, Realtor.com, U.S. News, & Keeping Current Matters
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