#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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926 W Grand Caymen Drive Gilbert, AZ 85233

$744,800
5 Beds
3 Baths
2,526 SqFt
Status Active
MLS # 6730489
Property Type Single Family Residence
Price Type --
This beautiful property is located in the popular community of THE ISLANDS. This neighborhood is highly desirable because it is one of the few lake communities in Arizona. We think you will enjoy the spacious, bright and open floor plan. The oversized backyard, patio, pool and spa are perfect for entertaining. The best part is the kitchen and bathrooms are highly upgraded. Our favorite features are all of the natural light, brick fireplace, vaulted ceilings, 3-car garage and cul-de-sac lot. This home is 100% move-in-ready. This property has only had two owners and is very well cared for and loved. The Islands amenities include basketball courts, sand volleyball, bocce ball court, community dock, 30-acres of grass, 74-acres of lakes, facility rental, exercise track, playground, ramadas and special events. The location of this property is EVERYTHING! We think you will LOVE living in the Town of Gilbert right around the corner from DOWNTOWN GILBERT, not far from the new GILBERT REGIONAL PARK and only a short distance away from the SANTAN VILLAGE MALL. You will have endless options for shopping, dining, and entertainment.

6932 E 3rd Street Scottsdale, AZ 85251

$744,700
2 Beds
2 Baths
1,618 SqFt
Status Active
MLS # 6744102
Property Type Apartment
Price Type --
Conveniently located in Old Town Scottsdale and moments away from the best galleries, restaurants and shopping. The attention to detail & implementation of biophilic design elements is certain to exceed expectations. Natural light flows through this open concept while a magnificently exposed concrete ceiling connects the spaces. The primary suite offers 2 custom closets, floor to ceiling windows & a steam shower. The oversized secondary bedroom, doubles as a private office & offers a large custom closet. Full size W/D, quartzite countertops, custom cabinetry, smart light fixtures, natural looking oversized LVP flooring w/ zero transitions, level 5 finished walls, Low-E Milgard windows & more. Available fully furnished, inquire for details. Easy lock and leave lifestyle!

4007 N 86th Street Scottsdale, AZ 85251

$744,500
3 Beds
2 Baths
1,888 SqFt
Status Active
MLS # 6699720
Property Type Single Family Residence
Price Type --
Experience the charm of this beautifully upgraded 3-bedroom, 2-bathroom home with a spacious 2-car garage, all situated in a desirable part of the 85251 area—free from overhead power lines. This home boasts a host of modern upgrades, including a brand new HVAC system (2023), energy-efficient designer interior doors and windows (2024), and newly installed underground sewer and plumbing lines. The thoughtfully reconfigured floor plan features an expansive primary suite complete with a custom closet, an oversized laundry room/pantry, and a convenient dog wash/utility sink. Enjoy the ultimate Scottsdale lifestyle with easy access to the vibrant offerings of Old Town, including shops, dining, and entertainment. The home has been pre-inspected by a certified home inspector.

2716 N 216th Avenue Buckeye, AZ 85396

$744,276
6 Beds
5 Baths
3,232 SqFt
Status Active
MLS # 6748408
Property Type Single Family Residence
Price Type --
This is a to be built home -- 6/7 months build time. Welcome to your 6-bed, 5-bath home with a 3-car tandem garage in Sienna Hills, next to Verrado, nestled on The White Tank Mountains for privacy and views. This energy-efficient home, with North/South orientation, features SPRAY FOAM insulation and an electric car charger outlet. Highlights include granite countertops, a Chef's Executive Kitchen, pot filler, paver driveway, Walk-In Super Shower, 10' tray ceilings, 8' overhead garage door, and a double gate on a 10' side yard for off-road toys. The 12' sliding glass wall connects indoor/outdoor living, and the primary bedroom has a massive balcony with stunning mountain views. HOA includes a pool, jacuzzi, clubhouse, and gym!

6886 W Mazatzal Drive Peoria, AZ 85383

$744,000
4 Beds
2.5 Baths
2,909 SqFt
Status Active
MLS # 6680694
Property Type Single Family Residence
Price Type --
Beautiful Sonoran Mnt Ranch home with mountain views all around with North /South exposure. Home has 4 Bedrooms, 2.5 Bath a large kitchen with granite countertops which opens to family room. Flex room off family room perfect for an office or play room. Gated courtyard for privacy and large front sitting area and fountain. Owners Suite is oversized, large bath room with separate tub and shower and large walk in closet. Garage is a 2-1 split and no step to give them extra depth. The backyard has a play pool with waterfall and a built in BBQ. Home has Solar 2021 installed 17.6 KWp system.

4444 E Sharon Drive Phoenix, AZ 85032

$744,000
4 Beds
3 Baths
1,989 SqFt
Status Active
MLS # 6750516
Property Type Single Family Residence
Price Type --
Home is also For Rent. Check the Private Remarks for more information. Every detail of this 5 Star energy efficient 4 bed 3-bathroom home has been thoughtfully designed to provide an exceptional living experience. Beautifully appointed kitchen with backsplash and a pot filler, great for entertaining. Freshly painted interiors and brand-new carpeting throughout and dimmer switches added to create a modern and inviting atmosphere. The backyard is a private paradise with no rear neighbors. Complete with a sparkling propane heated pool, inviting firepit, and BBQ with convenient propane hookup. The property includes two RV gates accommodating your recreational vehicles and toys. The west side of the house features an RV plug-in and dump station for added convenience.

26860 N 102nd Lane Peoria, AZ 85383

$744,000 - 3Br/3Ba -  for Sale in Northlands, Peoria
Open House
$744,000
3 Beds
2.5 Baths
2,356 SqFt
Status Active
MLS # 6762152
Property Type Single Family Residence
Price Type --
Immaculate, Move-In Ready Home with Stunning Mountain Views. Step into this almost brand-new, meticulously maintained home in the desirable Tierra Del Rio community, where style, comfort, and convenience come together in perfect harmony. The chef-inspired kitchen is a true showstopper, featuring gleaming white cabinetry, sleek quartz countertops, and top-of-the-line stainless steel appliances—all complemented by abundant storage space to keep things organized. With updated bathrooms and gorgeous flooring throughout, this home exudes modern sophistication, making it effortlessly move-in ready. The spacious 3-bedroom, 2.5-bath layout includes a dreamy master suite with a spa-like bath, complete with a large walk-in shower and a soaking tub for ultimate... relaxation. Relax and entertain in the open, flowing floor plan that seamlessly connects the kitchen to the airy great room. Upgraded light fixtures add an extra touch of elegance, while the three-car tandem garage offers ample space for both vehicles and toys. Enjoy the outdoor beauty of your private backyard retreat, featuring an extended pergola, synthetic grass for easy maintenance, a cozy fire pit, and an RV gate for added convenience. Backing to miles of scenic hiking trails, you'll savor breathtaking mountain views from your own backyard. Located just minutes from local amenities, this exceptional home combines luxurious living with a serene, nature-filled lifestyle. Plus, the home is available fully furnishedmaking it an ideal choice for those looking to settle in quickly. Close to ... EVERYTHING: Loop 303 NEW & UPCOMING shopping and dining, AMAZING SCHOOLS, PLUS EASY ACCESS TO TSMC!! RARE opportunity to own a stunning home in Tierra del Rio, backing to miles of hiking trails. Gorgeous white kitchen with beautiful quartz countertops and backsplash. Brand new stainless steel appliances, ready for your culinary adventures. Abundant storage throughout, ensuring a clutter-free environment. Updated bathrooms with modern fixtures and finishes. Elegant tile flooring adds a touch of luxury and ease of maintenance. Spacious open floor plan with no wasted space, perfect for entertaining. Expansive great room that seamlessly connects to the kitchen. Inviting master suite featuring a large tiled walk-in shower and soaking tub. Dual vanities and generous walk-in closets in the master bath. Private backyard oasis with an extended pergola for outdoor enjoyment. Lush synthetic grass and rock landscaping, low maintenance and beautiful. Fire pit area, perfect for cozy evenings with family and friends. 3-car tandem garage providing ample parking and storage options. Minutes away from Loop 303 for easy access to shopping and dining - PLUS EASY ACCESS TO TSMC!!

370 E Ranch Road San Tan Valley, AZ 85140

$744,000 - 3Br/2Ba -  for Sale in S8 T2s R8e, San Tan Valley
Open House
$744,000
3 Beds
2 Baths
1,645 SqFt
Status Active
MLS # 6757192
Property Type Single Family Residence
Price Type --
Dreaming of wide-open spaces and country living? Just over 2 ACRES This exceptional horse property in the heart of San Tan Valley, offers everything you need for your equestrian lifestyle! Plenty of room for your horses and all the toys! The property is fully fenced and includes multiple stalls, horse washing station. and tack room. Great room with open kitchen Vaulted ceilings, Newer roof all located minutes from freeways and shopping

550 S Emerson Street Chandler, AZ 85225

$743,000
3 Beds
2.5 Baths
2,561 SqFt
Status Active
MLS # 6743033
Property Type Single Family Residence
Price Type --
Beautiful upgraded home in highly sought neighborhood of Campo Verde. Open Concept with new large 4 panel slider that slides both ways open to yard. Large flat screen tv in living room. Gourmet kitchen with granite counters, island, stainless appliances, new pendants, backsplash and led lighting. Master bath has dual vanities, new led mirrors, upgraded tile walk-in shower, large garden tub with new tile surround. Large master closet is upgraded. Secondary bedrooms with jack and Jill bath. Upgraded bath with walk-in shower. Large den. New flooring and recessed lighting. Large yard with heated pool and spa. 3 car tandem garage with epoxy floors. Great Chandler location close to the 202 freeway, downtown Chandler, many shops and restaurants

27152 N 71st Ave -- Peoria, AZ 85383

$743,000 - 3Br/3Ba -  for Sale in Aloravita North Phase 2 Parcel 8, Peoria
Open House
$743,000
3 Beds
2.5 Baths
2,452 SqFt
Status Active
MLS # 6764570
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the Aloravita community ! This 3 bed, 2.5 bath and office/Den with 3 car garage residence is built on $30k premium lot. offers a specious open layout and split floor plan. all stainless still appliance. Beautiful back yard with artificial golf putting green and no house behind back wall. Perfect home for you and your family. COME TAKE TOUR !!!

29414 N 223rd Drive Wittmann, AZ 85361

$740,000
3 Beds
2.5 Baths
2,526 SqFt
Status Active
MLS # 6624080
Property Type Single Family Residence
Price Type --
FINAL OPPORUNITY! FINANCE INCENTIVES RATE BUYDOWN! JUST UNDER ONE-ACRE! NEW HOME, MOVE IN READY! 2526sqft single level home, 3-bedroom, Flex, 2.5 bath. 3 car tandem plus attached RV garage 15x52 w/ 14FT door at RV garage insulated and air conditioned! All tile no carpet! Open kitchen, beautiful white cabinets to the ceiling at kitchen, black door hardware, extended kitchen island, gourmet stainless steel appliances, impressive walk-In shower all tile and more! Privacy, privacy, privacy! Surprise Estates the ultimate sanctuary. We are located just outside the city of Surprise, with quick access to major freeway. Live better why wait!

33618 W Encinas Lane Tonopah, AZ 85354

$740,000
6 Beds
3.5 Baths
3,536 SqFt
Status Active
MLS # 6697818
Property Type Single Family Residence
Price Type --
New Custom Built Acre Home, that has not been lived in. The home features a split floor plan with 6 bedrooms* Open and spacious Kitchen and living room* All Tile Flooring* Granite Countertops* Ceiling fans in every room* Jack n Jill Bathroom* Foam insulation* Synthetic Stucco* Water softener plumbing* Spacious Laundry room* 3 car garage* Come and see the home today!! Buyer and Buyers agent to verify all pertinent information.

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