#1 Answer to the Housing Shortage: New Construction

The biggest challenge to today’s housing market is the shortage of housing inventory for sale. A normal market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason home prices have continued to appreciate at higher levels than historic averages.

The good news is that builders are now starting to build more homes in lower price ranges.

Builder Confidence is Up

The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.

“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”

Builders are Meeting the Needs of Today’s Purchaser

Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported:

“In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data.”

The WSJ article went on to say:

“Home builders are beginning to shift their focus away from luxury homes and toward homes at lower price points to cater to this burgeoning millennial clientele.”

The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.

#1 Answer to the Housing Shortage: New Construction | Simplifying The Market

Bottom Line

There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand. Builders are finally doing their part to help rectify this situation.  If you are exploring the real estate market for a new build or a resale home, give me a call for more information – J.P. Cook – 602-320-4253.

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948 W Redwood Drive Chandler, AZ 85248

$799,900
3 Beds
2 Baths
2,280 SqFt
Status Active
MLS # 6759509
Property Type Single Family Residence
Price Type --
Welcome to your Home Sweet Home! This property has been wonderfully updated including the island kitchen with its Quartz countertops, white cabinets & appliances. The bathrooms have also undergone updating, including the beautiful primary shower. Additionally this year, new carpet was installed in the bedrooms. The primary suite is split. In 2023, the roof & garage door were replaced. And in 2022, the AC and heater were replaced. You're going to love this backyard! The sparkling Pebble Tek pool graduates in depth from wading to diving and boasts a calming rock water feature. Adjacent to the pool is a matching Pebble Tek spa. Topping off this amazing backyard retreat is an outdoor kitchen with gas BBQ & sink, and a wood burning fireplace nestled in the corner for cool weather enjoyment!

32043 N Chestnut Trail San Tan Valley, AZ 85143

$799,900
5 Beds
3 Baths
4,403 SqFt
Status Active
MLS # 6767710
Property Type Single Family Residence
Price Type --
This stunning home sits on a massive corner lot with incredible curb appeal, featuring mature trees and an RV gate. Inside, you'll find upgraded baseboards, brand-new carpet, and fresh interior paint throughout. The chef's kitchen is both functional and stylish, offering ample cabinet and countertop space, staggered upper cabinets, recessed lighting, a new single basin sink, an electric stovetop, a pantry, and a convenient beverage station with a wine fridge and extra cabinet space. A downstairs bedroom and a drop zone off the garage add extra convenience to the home. Upstairs, the massive primary suite is a true retreat, with vaulted ceilings, dual vanities, a separate tub and shower, a built-in vanity area, and a spacious walk-in closet. he additional bedrooms are generously sized, and an extra flex space provides even more versatility. Step outside to a backyard oasis, complete with a newer heated pool featuring three water features, a baja step, and travertine decking. Relax under the spacious gazebo, or enjoy the multi-sport court, perfect for basketball or pickleball. The detached RV garage is equipped with AC, a full bath, a hot water heater, and 220-amp power. Located in the sought-after Johnson Ranch Community, enjoy access to a community pool, basketball courts, a catch-and-release pond, and much more! Come see this gorgeous home and make it yours today.

11115 E Tarragon Avenue Mesa, AZ 85212

$799,900 - 4Br/4Ba -  for Sale in Bella Via Parcel 13, Mesa
Open House
$799,900
4 Beds
3.5 Baths
3,391 SqFt
Status Active
MLS # 6779736
Property Type Single Family Residence
Price Type --
This move-in ready, original-owner home in Bella Via offers 4 bedrooms and 3.5 baths across 3391 SqFt. The floor plan features a spacious great room with a built-in media wall, formal dining, an office with double doors, a bonus/flex room, and a casita with its own entrance from the courtyard. The gourmet kitchen boasts staggered maple cabinets, stainless appliances, granite countertops, tile backsplash, a large pantry, and an island with a breakfast bar and pendant lights. Sliding glass doors in the casual dining area and great room open to a covered patio with an electric shade and travertine pavers around a pool that has a heat pump. The primary bedroom offers backyard access, a tray ceiling with recessed lights, and an en-suite bath with dual vanities, a soaking tub, a separate shower and a walk-in closet. The casita features a living area, bedroom, and full bath. Additional highlights include a large laundry room with cabinets and sink, engineered wood flooring, plantation shutters and ceiling fans throughout, a water softener, a landscape irrigation system, a pavered courtyard, and a 2-car garage. The community provides trails, playgrounds, a dog park, and an amphitheater.

10155 E Toledo Avenue Mesa, AZ 85212

$799,900 - 6Br/5Ba -  for Sale in Cadence At Gateway, Mesa
Open House
$799,900
6 Beds
4.5 Baths
3,161 SqFt
Status Active
MLS # 6781290
Property Type Single Family Residence
Price Type --
You won't believe the luxury and convenience in this exceptional home within the sought-after Cadence at Gateway community. This nearly new residence boasts 6 bedrooms, 4.5 bathrooms, and a range of high-end finishes and upgrades. The main floor features the primary suite with a luxe ensuite bath, along with an extra bedroom with its own private bath, ideal for friends and guests. The living room ceiling has premium Sonos speakers wired into the ceiling for the times you want to play your favorite tunes. What's more, the kitchen is stacked with over $16k worth of custom Wolf appliance upgrades that will instantly make you feel like a chef. On the first floor, luxury tile flooring flows through the living areas, with cozy carpet upstairs where it counts. Upstairs, you'll find four... additional bedrooms, two bathrooms, and a spacious loft that adds endless possibilities to the living space. The backyard is a blank slate ready to be customized, with an extended covered patio running the length of the yard. The 3-car garage, complete with 8-foot doors, provides ample space for storage and parking. Living in Cadence at Gateway means enjoying resort-style amenities that elevate your lifestyle. Relax or get active with features like pools, a spa, and the advanced MOTO fitness center. Take a dip in the play pool with water slides or keep fit in the lap pool. The community spa is perfect for unwinding, with stylish cabanas and a fire pit. Fitness lovers will appreciate the MOTO fitness center, fully equipped with a spin room offering on-demand videos and a movement studio for classes like yoga and Zumba. The community hub, Flourish Community Center, is designed for socializing, with spaces for parties, watching the big game, or meeting neighbors. Enjoy Game On for classic games like pinball and foosball, or grab a coffee at STIR, a cozy spot with free WiFi to connect or get some work done.Additionally, Basis Mesa is within 1 mile of this home, and it is one top rated school in Arizona! This home is a rare find don't miss your chance to experience all that Cadence at Gateway has to offer!

21127 W Minnezona Avenue Buckeye, AZ 85396

$799,900 - 3Br/2Ba -  for Sale in Verrado Highlands District Phase 1, Buckeye
Open House
$799,900
3 Beds
2 Baths
2,519 SqFt
Status Active
MLS # 6748737
Property Type Single Family Residence
Price Type --
Welcome to the exclusive Gated Community of Verrado Highlands! This home showcases pride of ownership and is move-in ready. The open-concept living, dining, and kitchen areas create a spacious atmosphere. The living room offers ample space for large furniture and views of the backyard and sunset views. The gourmet kitchen is equipped with 42'' cabinets, additional upper cabinets, soft-close and rollout drawers, quartz countertops, a custom herringbone backsplash, a premium stainless steel appliance package with a gas cooktop, and a walk-in pantry. The expansive master bedroom features floor-to-ceiling windows, a walk-in closet, and a stunning master bath with a floor-to-ceiling tiled shower, dual vanities with quartz countertops, and a standalone soaking tub. Two additional bedrooms share a secondary bath, while the office/den boasts dual glass French doors for added privacy. The home also includes extra cabinetry for storage. Step into the backyard, an entertainer's paradise that backs a natural desert landscape! It offers multiple seating areas, an extended covered patio, raised platform, fire pit, pergola with a built-in barbecue and fridge, water fountain, commercial-grade misters, artificial turf, and pavers. The garage features epoxy flooring and built-in cabinets. Additional highlights include complete home water filtration sytem, custom Hunter Douglas window coverings, surround sound throughout and backyard pre-wired, 10' and 12' ceilings, 8' doors, tankless water heater, and so much more. Verrado is a vibrant community lifestyle with a focus on outdoor activities and social engagement. You will not be disappointed.

15802 W Avalon Drive Goodyear, AZ 85395

$799,900 - 4Br/3Ba -  for Sale in Pebblecreek Phase 2 Unit 27, Goodyear
Open House
$799,900
4 Beds
3 Baths
3,401 SqFt
Status Active
MLS # 6757924
Property Type Single Family Residence
Price Type --
HUGE price change! Must see this exquisite 4-bedroom, plus enclosed den, home boasting 3 full bathrooms and exceptional features. Enjoy the benefits of OWNED solar panels, providing both efficiency and cost savings. The new 2022 POOL is a standout, equipped with heating and cooling options for year-round enjoyment! Situated on the 12th hole of the Tuscany golf course, this home offers an ideal location with an extended distance from the home to the fairway and no cart path interruptions. The updated kitchen is a chef's dream, featuring newly finished cabinets, huge island with seating for 6+, a gas stove, and double ovens. Additional highlights include new interior and exterior paint, a spacious 3-car garage with ample storage, and upgraded hardware throughout the entire home...see more This home combines modern comfort with elegant design, making it a perfect retreat for both relaxation and entertaining. Too many upgrades to list!

14407 N 75th Drive Peoria, AZ 85381

$799,900 - 3Br/3Ba -  for Sale in Bella Pasa, Peoria
Open House
$799,900
3 Beds
3 Baths
2,151 SqFt
Status Active
MLS # 6507357
Property Type Single Family Residence
Price Type --
** QUICK MOVE-IN HOME*** On a 11,334 sq/ft lot, with a 2,151 sq ft on a single level. A 3-car tandem garage PLUS, a retreat/guest quarters with a kitchenette in the sitting room, full bath, walk in closet and bedroom making a total of 3 bedrooms and 3 full bathrooms! Extended patio, multi-sliding glass doors to the backyard, gourmet kitchen with LG appliances including wall ovens, custom low voltage and electrical packages. Designer touches include Calacatta Devine quartz countertops in the kitchen and laundry room, with white AND caviar 42'' shaker cabinets throughout the home. Custom front yard landscape package with paver driveway.

10803 E Ramblewood Circle Mesa, AZ 85212

$799,888
3 Beds
2.5 Baths
2,261 SqFt
Status Active
MLS # 6742350
Property Type Single Family Residence
Price Type --
Fabulous 3-bedroom, 2.5-bathroom home. Imagine relaxing in your private backyard paradise, complete with a custom heated pool, soothing hot tub, gourmet outdoor kitchen hooked to gas line, and a covered entertainment area - perfect for year-round fun. Inside soaring high ceilings, warm wood flooring, and a bright, open layout. Unwind in the expansive great room, where sliding glass doors open to your backyard oasis. Prepare culinary delights in the chef-inspired kitchen, boasting beautiful staggered wood cabinets, granite countertops, a breakfast bar island, and top-of-the-line appliances. Redesigned master bedroom complete with custom bathroom, custom walk in shower and huge expanded custom closet. Garage is a 3 car tandem garage with custom cabinetry for all your toys. Do not miss this!

22511 E Saddle Court Queen Creek, AZ 85142

$799,822
4 Beds
3 Baths
2,395 SqFt
Status Active
MLS # 6740251
Property Type Single Family Residence
Price Type --
Just bring your toothbrush! This beloved model comes fully furnished, including wall décor, designer touches, built ins and it's and ready for its owner! This single level home of our most popular plan features a desert modern exterior style, four bedrooms, three full bathrooms and a flex room with built in custom cabinets. The kitchen features stylish slab cabinets in a natural stain, a gorgeous natural Quartzite waterfall island that overlooks the spacious dining and great room area, a large and bright primary suite with faux ceiling beams, with access to your large, covered patio. The primary bathroom includes a double vanity and a frameless shower with custom surrounds, alongside a soaking tub. February 2025 COE.

327 W Calle De Caballos Street Tempe, AZ 85284

$799,800
5 Beds
2.5 Baths
2,846 SqFt
Status Active
MLS # 6776264
Property Type Single Family Residence
Price Type --
**Discover Your Dream Home at 327 W. Calle de Caballos, Tempe, AZ!** This stunning residence combines comfort and style in a vibrant location. Step inside to find an open-concept living space filled with natural light, soaring 18 foot ceilings, and elegant finishes. The modern kitchen boasts stainless steel appliances, granite countertops, and ample storage, perfect for entertaining or quiet dinners. Retreat to the luxurious primary suite with a spa-like en-suite bathroom. Three additional bedrooms provide versatility for family or home office use. Located minutes from ASU, downtown Tempe, shopping, and dining, this home offers ultimate convenience. Don't miss this chance—act now for your private tour today and make 327 W. Calle de Caballos your new home! and a bountiful walk-in closet. Upstairs, you'll find a loft ideal for a reading nook and 3 sizable bedrooms. The backyard offers a covered patio and a no-fuss landscape, providing an excellent space for gatherings & barbecues. What's not to like? Close to major roads, public transportation, schools, restaurants, and more! Come see this gem!

7646 W Crabapple Drive Peoria, AZ 85383

$799,658
4 Beds
3 Baths
3,296 SqFt
Status Active
MLS # 6782632
Property Type Single Family Residence
Price Type --
MLS#6782632 June Completion! The Azelia at Aloravita South Discovery is an impressive 2-story home with 3,296 sq. ft., featuring 4 bedrooms, 3 bathrooms, a 2-car garage, and a formal dining area. Enter through the foyer, where a hallway branches off: one direction leads to a secondary bedroom with a full bathroom, while the other passes the formal dining room and opens up to a spacious, open-concept kitchen, casual dining area, and great room, complete with a flexible space adjacent to the great room. Step out onto your private covered patio to enjoy Arizona's beautiful weather. Upstairs, you'll find the remaining bedrooms and an additional full bathroom, offering ample space for everyone. Structural options include: flex room, gourmet kitchen, paver porch, RV gate & garage service door.

23202 W Durango Street Buckeye, AZ 85326

$799,600
4 Beds
3.5 Baths
3,711 SqFt
Status Active
MLS # 6764916
Property Type Single Family Residence
Price Type --
These homes do not come up very often. This home sits on just over 1 acre of land and has over 3,700SF of livable space all on one level. There is the main house as well as a small guest home that has a bedroom and bathroom. This home has been fully remodeled and well taken care of, the home has newer floors, paint inside and out, quartz countertops, updated light fixtures, door knobs and hardware throughout. There has also recently been added artificial grass in the backyard and landscape rock. The HOA allows the home to build an RV garage on these lots for the people with lots of toys. The multiple accent walls throughout the home also give a very modern appeal to the home. This home is a must see.

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