Why New Residential Construction May Be Your Best Option

by Samantha Elari 08/29/2021

Photo by Nicholas Lim from Pexels

People are buying new construction homes again, and experts expect the trend to continue. But why do analysts believe new construction is on the rise? Several factors are coming together.

Quarantine Fatigue

In the housing industry, there has been overall growth in the purchasing of single-family homes. Some of this buying activity is the result of the pandemic. Many people found themselves in cramped apartments with no yard and no ability to enjoy shared community spaces like playgrounds, tracks, sportsplexes and gyms.

This left many people eager to make some elbow room for themselves.

Limited Inventory = Skyrocketing Prices

With more people moving out of cramped condos and apartments and those in housings desiring to stay, we see a housing bottleneck. There are fewer houses than people who want them, and this is driving existing home prices up.

Builders meet this demand by increasing the number of new builds to increase the inventory while also benefiting from the rising prices. The market has cooled slightly as many developers have bought up land and builders have jumped into action, creating more competition among themselves. However, the demand is still there and higher than usual.

More Remote Work

It's no secret that a lot of companies sent their employees to home offices during the pandemic. But what you may not realize is that a large number have already confirmed that they will be keeping a percentage of employees remote. This is driving new construction home buildings in two primary ways. 

First, when people can work from anywhere, they can move anywhere, including their dream homes, wherever they may be. Second, if you're working from home, you want that space to be the ideal workspace, so many are moving out of cramped existing homes and apartments and into more expansive dwellings. 

Time to Move Away from the Tiny Home

The Tiny Home trend may recover after the pandemic. But for now, living in a tiny space, especially if you're sharing it with another person is looking a lot less attractive. People are going big right now. They want open floor plans and lots of space to work out, work and play at home. This is driving an increase in the number of bigger single-family homes beginning construction.

New Residential Home Construction Trends

2020 has been a transitional year for every industry. We can expect many of the mindsets and consumer habits to continue well into the future as more people are thinking about what it means to live in a multi-family complex or city. The new construction may slow, but the desire for new construction is likely to stay with us for some time. 

About the Author
Author

Samantha Elari

Samantha Elari, your trusted local, hometown Realtor. She works diligently to promote your best interest whether you were buying or selling, by using state-of-the-art technology, team collaboration, superior marketing materials and strong negotiating skills. She has resided in the Denver metro area for over 40 years and has seen many changes in the real estate market. Call today for all of your real estate needs.

“It would be a pleasure and honor to work for you.” - Samantha Elari

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01/07/2019 - kellydcurl Sold a Single Family home in 2016 in Westminster, CO.

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01/03/2019 - zuser20160727132728859 Bought a Single Family home in 2018 in Arvada, CO.

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01/03/2019 - c alquist Sold a Single Family home in 2018 in Firestone, CO.

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01/03/2019 - dalquist59 Bought and sold a Single Family home in 2017 in Westminster, CO.

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