What’s Motivating More Buyers To Choose a Newly Built Home?

What’s Motivating More Buyers To Choose a Newly Built Home?

Planning to buy a home soon? Consider opting for a brand-new one. Recent data indicates that more buyers are recognizing the benefits of new home construction, and you might discover it's the right choice for you as well.

The National Association of Realtors (NAR) reports that newly built homes made up 15% of all homes sold last year. This marks a significant increase and is the highest percentage in 17 years (see graph below):

To understand why so many people are choosing brand-new homes, the National Association of Realtors (NAR) conducted a survey of recent buyers. Here are the top reasons why new builds have gained so much popularity (see graph below):

 Avoiding Renovations or Problems with Plumbing or Electricity (42%)

According to buyers, the primary benefit of purchasing a brand-new home is the peace of mind that comes with having everything new. In today's costly housing market, coupled with inflation squeezing budgets, minimizing additional expenses is crucial. New builds offer this advantage.

A newly constructed home is less likely to require unexpected repairs, which reduces the immediate maintenance costs you need to budget for. Additionally, many builders provide warranties on their homes, offering an extra layer of financial protection for major systems in the house.

Ability To Choose and Customize Design Features (27%)

You might also have the opportunity to customize aspects of the build according to your unique preferences. This can range from minor details like choosing the knobs for the cabinets and selecting the light fixtures for the dining room, to more significant choices such as floor plans and the color of the siding. So, if you're struggling to find a home that suits your taste, it might be time to consider building one.

The Amenities of New Home Construction Communities (25%)

Many new developments include amenities such as parks, pools, fitness centers, and community spaces. These features not only enhance the appeal of living in such areas but also help foster a sense of connection with your neighborhood. These amenities can significantly enrich your lifestyle and offer great value for your investment in a new home.

Lack of Inventory of Previously Owned Homes (15%)

Given that the supply of existing homes (homes that were previously lived in) remains below normal levels, more people are exploring new construction options with their agents. Builders are currently meeting this demand effectively, as new builds constitute a larger portion of the available homes for sale than usual. Exploring these new constructions can significantly expand your range of choices. Additionally, there’s no need to worry about overbuilding; builders are merely catching up after years of underbuilding.

Energy Efficiency (14%)

Newly built homes often incorporate the latest energy-efficient materials and technologies. This not only aligns with contemporary environmental standards but also results in lower utility bills and a smaller environmental footprint. In an interview with U.S. News Real Estate, Kevin Morrow, Senior Program Manager at the National Association of Home Builders (NAHB), discussed this topic, highlighting the benefits and advancements in energy efficiency in new home construction.

“The more energy-efficient mechanics of the house also help reduce utility bills for new home buyers . . . Newly-constructed homes often include green systems and appliances—like high efficiency stoves, refrigerators, washing machines, water heaters, furnaces, or air conditioning units—that homes built years ago might not.”

Smart Home Features (11%)

Lastly, the integration of smart technologies is a significant draw for tech-savvy buyers looking for the latest advancements. New home constructions often include these modern features, appealing to those who prioritize having cutting-edge technology in their living spaces.

The Importance of Using Your Own Agent

Newly built homes are increasingly popular among buyers, and the reasons are clear. If you're feeling inspired to explore what's available, it's crucial to engage your own real estate agent.

Builder contracts can be complex, with intricate terms and detailed fine print. Having your own agent ensures that you have an advocate who will not only ensure you're getting quality construction but also guide you through the entire purchasing process from start to finish. This support can be invaluable in navigating the specifics of new home buying.

Bottom Line

Imagine avoiding the hassle of renovations and having the freedom to choose the exact design features you desire. If this appeals to you, let’s connect to ensure you have your own agent who can help you negotiate with the builder. This way, you can confidently purchase a new home, tailored to your preferences and needs.