#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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4469 W Bonnie Lane Queen Creek, AZ 85144

$749,000
4 Beds
3 Baths
2,766 SqFt
Status Active
MLS # 6748687
Property Type Single Family Residence
Price Type --
BRAND NEW Construction w/ Custom-Quality Upgrades! This beautiful Modern Farmhouse is located on a FENCED 1.25 ACRE of Horse Property. Gourmet Kitchen w/ WOLF Appliances, high-end Cabinets w/ 42'' uppers, White Quartz Countertops, 36'' WOLF Gas Cooktop & Range, Built-in Stainless-Steel pull-out Microwave & Wood Plank Tile Floors. Stunning Master Bathroom w/ Freestanding Soaking Tub, BEACH ENTRY Shower & Double Vanities. Exceptional Energy Efficient - boasting Spray Foam Insulation, Premium Trane AC units & High-end Windows. Superior Construction & Craftmanship includes Premium Roofing System, Premium Synthetic Stucco & much more! Estimated completion date in Dec.

1 County Road 1000 -- Greer, AZ 85927

$749,000
4 Beds
2 Baths
2,010 SqFt
Status Active
MLS # 6527284
Property Type Single Family Residence
Price Type --
Escape to one of Arizona's small & charming towns just 26 miles from Sunrise Ski Resort & 37 miles to Hon-Dah Casino! 2 beautiful acres located in the heart of the village within walking distance to the stream, shops & restaurants. Great layout, many upgrades throughout the cabin. Large yard with tasteful stone accent walkway & stone/beam fencing. Excellent history as a successful short term rental.. A new tree house complete with a worm digging station and zip-line. A new, creek-fed pond was just dug out on the second acre & it is zoned to allow horses. You're in for a wonderful adventure & serenity with this 4-bedroom, 2-bathroom. Perfect home, vacation rental or investment opportunity- find out why everyone falls in love with this adorable mountain escape!

Show Low AZ 85901

$749,000
3 Beds
2 Baths
1,827 SqFt
Status Active
MLS # 6761570
Property Type Single Family Residence
Price Type --
Brand New Home in the highly sought after community of Torreon with amenities that are second to none! Nestled on a nicely treed cul-de-sac lot with paver driveway, no maintenance smart siding, covered front & back decks, alder cabinets, Trex decking, 8ft alder doors, Quartz countertops, Gas FP & more!

1319 W Rhea Road San Tan Valley, AZ 85144

$749,000
3 Beds
2 Baths
2,286 SqFt
Status Active
MLS # 6711787
Property Type Single Family Residence
Price Type --
FREE 2 YEAR HOME WARRANTY! 1319 W Rhea Rd was built in 2022, is near scenic BLM land and is fully landscaped, sitting upon over 1.5 acres with NO HOA. This move-in ready home with horse property potential has it all AND room to add a casita! Curb appeal greets you upon arriving, then take notice of the air conditioned 3.5 car garage - ideal for storage, hobbies, or additional vehicles. You'll pass by a covered front porch on your way inside, then enjoy the abundance of natural light, gorgeous tile flooring, neutral color palette and tasteful upgrades. Upon entering there's a den/office immediately to your left, and a huge open concept living/dining area which shares space with the immaculate kitchen. This kitchen features stainless steel, professional grade appliances worth nearly $30k, an expansive island, ample counter surface and a number of cabinets providing all the storage you'll ever need. And a pantry to boot! Near the laundry room, you'll find two secondary bedrooms about equal in size. The primary bedroom accommodates large furniture and boasts a luxurious en suite bathroom with double sinks, spacious shower, and a massive walk in closet. The enormous backyard features a lengthy covered patio, more dreamy mountain views, is landscaped to perfection and has TWO RV gates. Privacy, acreage, and upgrades in a newly constructed home - what more could one need?! Make this your home sweet home today!

17614 E Chevelon Canyon Circle Rio Verde, AZ 85263

$749,000
2 Beds
2 Baths
1,544 SqFt
Status Active
MLS # 6757068
Property Type Single Family Residence
Price Type --
Nestled within the exclusive Verde River community, this luxury home epitomizes upscale living with its blend of modern comforts and breathtaking surroundings. Boasting 2 bedrooms plus an office, 2 gorgeous bathrooms, and an epoxy floor 2 car garage, this residence offers both practicality and elegance. Upon entering, the gourmet kitchen immediately captivates with upgraded cabinetry , GE monogram built-in wall appliances, sophisticated tile backsplash and beautiful Quartz countertops. The centerpiece is a generously sized kitchen island adorned with designer pendant lighting, perfect for casual dining or entertaining guests. The dining area offers a custom-built banquette finished with an elegant chandelier. Plus enjoy the highly -functional upgrades throughout featuring a water softener, Reverse Osmosis, and an in-wall vacuum system. The great room is bright with natural light featuring surround sound and a multi-panel extended length sliding glass door that invites panoramic views of the majestic mountains indoors. The primary suite exudes elegance, enter through the custom barn door to a pristine ensuite bathroom complete with a dual sink vanity illuminated with under cabinet lights. The oversized shower is complete with stylish tile and the walk-in closet is generous in size. Bedroom 2 is inviting and move-in ready! Outside, the allure of mountain views continues to impress. The covered patio, embellished with pavers, offers a perfect setting for outdoor dining. A separate pergola hosts a custom fire pit, ideal for cozy evenings under the stars, while a built-in BBQ area promises delightful gatherings. Plus enjoy the surrounding beautiful mature landscape! The HOA maintains the exterior landscape as well! The amenities at Verde River are World Class with Tom Lehman inspired eighteen-hole Golf course, tennis courts, pickleball courts, and bocce ball, heated lap pool and Resort style swimming pool, hot tub, Afterburn fitness center, Helen's demonstration Kitchen for cooking classes and a 7.5 acre dog park. The community center has casual poolside dining at Eddy's Diner and gourmet dining at award-winning Needle Rock Kitchen and Tap, Alvea Spa with full-service Salon and Spa amenities, Art Loft and events center. Trilogy at Verde River is adjacent to the Tonto National Forest and is situated in the middle of miles and miles of hiking and biking trails.

14100 S Calera Road Arizona City, AZ 85123

$749,000
3 Beds
2.5 Baths
1,283 SqFt
Status Active
MLS # 6771321
Property Type Single Family Residence
Price Type --
Income-Generating Property with Endless Possibilities! Looking for a lucrative investment opportunity? This 4-plex is your chance to either live in one unit and let the others cover your mortgage or own a property that generates steady passive income. Each spacious unit features 3 bedrooms, 2.5 baths, and a private garage. Three of the units are equipped with newer HVAC systems for added comfort and efficiency. Added front landscape and freshly painted exterior makes this a turn key property. Situated on an oversized lot, this property offers potential for even greater returns—consider the possibility of adding an additional unit or another property on the back portion of the lot. The prime location only enhances its investment appeal. Don't miss out on this exceptional opportunity.

8536 E Mariposa Drive Scottsdale, AZ 85251

$749,000
3 Beds
2 Baths
1,619 SqFt
Status Active
MLS # 6750669
Property Type Single Family Residence
Price Type --
Welcome to this beautifully remodeled home nestled in the heart of Old Town Scottsdale. This charming residence, boasting 3 cozy bedrooms and 2 modern bathrooms, is a perfect blend of comfort and style. Step outside to enjoy the luxury of a private, heated pool, ideal for relaxation or entertaining. Situated in a prime location, this home is just moments away from the vibrant scenes of Scottsdale, including the renowned Fashion Square Mall and a plethora of exquisite dining options. Additionally, this property currently serves as a lucrative short-term rental, offering a fantastic income-generating opportunity. Don't miss out on the chance to own a piece of Scottsdale's finest living.

610 E Kristi Lane Flagstaff, AZ 86005

$749,000
3 Beds
2.5 Baths
1,734 SqFt
Status Active
MLS # 6756697
Property Type Single Family Residence
Price Type --
Quintessential Flagstaff Home in sought after Bennett Estates! Nestled in the pines, this MOVE-IN ready, SINGLE LEVEL 3BR, 2.5 Bath home is a gem. Located on a quiet cul-de-sac enjoy the outdoors on the inviting front deck or shaded open paver patio. Inside, spend your time enjoying the beautifully remodeled kitchen that boasts hickory cabinets and new appliances, a welcoming fireplace in the living room, and a spacious primary bedroom with wood floors, vaulted ceilings, and its own cozy fireplace. For the hobbyist, the insulated and heated 1-bay garage with 220V hookup is a perfect WORKSHOP. Don't miss this opportunity to own a wonderful home in Bennett Estates!

18750 N 90th Way Scottsdale, AZ 85255

$749,000
2 Beds
2 Baths
1,542 SqFt
Status Active
MLS # 6763848
Property Type Single Family Residence
Price Type --
Charming north Scottsdale residence at an amazing price and in an amazing location. This beautiful home offers an open floor plan with vaulted ceilings. Wood shutter complete the dramatic look. Convenient corner lot with stunning, yet low maintenance landscaping. The backyard boasts several intimate seating areas surrounding the sparkling pool. Bedrooms are split and the master has a walk-in closet and separate tub shower. The sunlit kitchen has SS appliances and tile backlash above the granite countertops. The flooring is tumbled travertine or luxtury vinyl in the bedrooms. This property is move-in ready and perfect for a primary residence or second home in a modern desert setting with many amenities a short distance away.

7161 E Rancho Vista Drive Unit 2001 Scottsdale, AZ 85251

$749,000
2 Beds
2 Baths
1,388 SqFt
Status Active
MLS # 6763830
Property Type Apartment
Price Type --
This stunning interior-facing unit has a lovely terrace, creating a peaceful and inviting atmosphere. The beautiful kitchen features granite countertops, and a breakfast bar that seamlessly flows into the open dining and living spaces. Large windows throughout the unit extend to the terrace, filling the home with natural light and enhancing its warmth. Optima offers a wide range of luxurious amenities, including a 24,000 sq ft fitness center, lap pool, two spas, a steam room, basketball and racquetball courts, and an exercise room. The gorgeous landscaped grounds feature waterfalls flowing into pools, and a putting green. Residents also enjoy two outdoor pools/spas, on-site retail shopping, a dog park, and close proximity to Scottsdale Fashion Square for dining, shopping & more!

756 W Nido Circle Mesa, AZ 85210

$749,000
4 Beds
2.5 Baths
2,670 SqFt
Status Active
MLS # 6766297
Property Type Single Family Residence
Price Type --
This beautiful home on a sprawling cul de sac lot has 4 bedrooms, 2.5 baths Split floorplan with all bedrooms upstairs. Formal Living room, Dining room, Family room and Eat in Kitchen. Sparkling pebble-tec pool and lots of yard space, PLUS a huge detached Workshop/RV garage. Solar panels and a new HVAC.

5331 N Pajaro Court Litchfield Park, AZ 85340

$749,000
5 Beds
3.5 Baths
4,300 SqFt
Status Active
MLS # 6768699
Property Type Single Family Residence
Price Type --
Pride of ownership is shown in this stunning residence in the gated Community of Veranda! Nestled on a coveted cul-de-sac, this East/West facing gem boasts a lovely curb appeal enhanced w/a 4-car garage, RV gate, & mature landscape. Be captivated by its warm & welcoming interior paired w/thick baseboards, neutral palette, high ceilings, & a cozy fireplace in the bright living room. You'll also have a formal dining room & a large family room complemented by a wet bar. SS appliances, an island w/a breakfast bar, recessed lighting, abundant cabinetry, glass block windows, & a breakfast nook complete this spotless kitchen. Make the flexible loft an entertainment area. Open the double doors to discover a HUGE owner's retreat, showcasing plush carpet, an ensuite w/dual sinks, & a soaking tub. Additionally, this house includes a 2nd main bedroom with a bathroom. Escape to the backyard oasis comprised of a covered patio, play area, built-in BBQ, and diving pool perfect for summer days. Welcome to your dream paradise!

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