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Builders Prioritize Smaller, Affordable Homes: A New Trend in the Housing Market

Writer's picture: Andrew BensonAndrew Benson

Updated: Dec 30, 2024

According to keepingcurrentmatters: Builders Focus on Smaller, Affordable Homes


Even as affordability improves, purchasing a home can still be challenging. However, there’s good news: builders are now focusing on smaller homes and offering key incentives to buyers. Both trends can significantly help if you're concerned about finding a home that fits your budget.


Builders Shift to Smaller Homes


During the pandemic, many buyers sought larger homes for remote work, home gyms, and virtual schooling, and builders responded by constructing bigger spaces. Now, with affordability being a pressing concern, builders have shifted their focus to smaller single-family homes. Census data reveals that over the past few years, there’s been a significant trend toward building smaller homes to cater to current market demands.


Builders know that homebuyers are primarily seeking affordability, and smaller homes often come with lower price tags. The National Association of Home Builders (NAHB) reports that homebuyers are now looking for homes around 2,070 square feet, down from 2,260 square feet 20 years ago.


Additionally, experts point out that developers are adapting to the demand for lower-cost options by producing homes with less square footage.

Newly Built Homes Can Meet Your Homebuying Goals


If affordability is a concern, considering newly built smaller homes may be a smart move. Builders are offering incentives, such as price reductions and mortgage rate buy-downs, that can make a significant difference in monthly payments. Recent data shows that more than half of builders are offering such perks.


Beyond affordability, newly constructed homes come with brand-new everything, reduced maintenance needs, and the latest features, making them a valuable option to explore.

Contact Benson Group today to learn more about finding a home that fits your budget and lifestyle.

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Source: keepingcurrentmatters.com

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