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The desirability of latest properties continues to develop. Confronted with the choice of selecting between an present house and a newly constructed house, 61% of house consumers in a current NAHB examine* indicated a brand new house is their first choice. That marks the very best share of consumers leaning towards a brand new house since 2007, when 63% of consumers most popular new building.
To check, in 2018, 54% of consumers most popular a brand new house. The share jumped to 60% in 2020, because the COVID-19 pandemic diminished present stock and made many consumers afraid of touring occupied properties. By 2023, excessive mortgage charges had ‘locked-in’ thousands and thousands of present owners of their properties, and that offer vacuum left new properties as the one out there choice for a lot of consumers.
An necessary truth to focus on is that in 2023, the value of a typical new house was solely 9% larger than the value of a typical present house ($428,200 vs. $394,100). In sharp distinction, that hole was 4 instances bigger in 2013, when new properties price 36% greater than present properties ($268,900 vs. $197,400).
New properties may be custom-built on the client’s lot, or they are often built-for-sale (together with the land). During the last twenty years, the NAHB examine* reveals a rising development within the share of consumers who would like a brand new house built-for-sale, from 22% in 2003 to 40% in 2023. In distinction, the share who would like a custom-built house declined from 49% to 21% throughout this era.
* What House Consumers Actually Need, 2024 Version sheds mild on the housing preferences of the standard house purchaser and is predicated on a nationwide survey of greater than 3,000 current and potential house consumers. Due to the inherent range in purchaser backgrounds, the examine supplies granular specificity based mostly on demographic components corresponding to technology, geographic location, race/ethnicity, revenue, and worth level.
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