#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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11310 E Circle Drive Cornville, AZ 86325

$740,000
3 Beds
3 Baths
2,354 SqFt
Status Active
MLS # 6771109
Property Type Single Family Residence
Price Type --
Completely remodeled and upgraded, this 3-bedroom, 3-bath home with a studio-style detached casita with its own bathroom offers modern luxury on an acre of horse property just 30 minutes from Sedona. No detail was overlooked--brand-new kitchen with sleek finishes, new floors, roof, baseboards, and water heater. Both bathrooms have been fully upgraded, along with countless other improvements throughout the home. Experience peace of mind with all-new features while enjoying the natural beauty and tranquility of the quiet neighborhood. This home is the perfect blend of country living and contemporary comfort. Come check the house out incredibly easy to show!

2679 E Indian Wells Drive Gilbert, AZ 85298

$740,000
4 Beds
2.5 Baths
2,602 SqFt
Status Active
MLS # 6772992
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning 4-bedroom, 2.5-bathroom residence, built in 2018, offers modern living in the desirable Adora Trails neighborhood. As you step inside, you'll be greeted by elegant wood-like tile flooring that flows through all main living areas, creating a warm and inviting atmosphere. The thoughtful split floor plan ensures privacy and comfort for everyone. The spacious kitchen is a chef's delight, featuring beautiful granite countertops, double ovens, a gas stove top, and a large walk-in pantry—perfect for culinary creations and entertaining. The kitchen seamlessly opens to a bright living area, highlighted by a large sliding glass door wall that leads to your covered patio, blending indoor and outdoor living. Retreat to the luxurious primary suite, where you'll find a separate tub and shower, providing a spa-like experience. Plantation shutters throughout the home allow you to control natural light while enhancing your home's aesthetic. Step outside to your beautiful backyard oasis, featuring a sparkling poolideal for relaxing or hosting gatherings. The expansive outdoor space offers endless possibilities for fun in the sun. This home also includes a generous 4-car tandem garage, providing ample space for vehicles and storage. Don't miss the chance to make this stunning property your own!

11884 W Grant Street Avondale, AZ 85323

$740,000
6 Beds
2.5 Baths
4,039 SqFt
Status Active Under Contract
MLS # 6726187
Property Type Single Family Residence
Price Type --
Gorgeous remodeled home w/ amazing Chef's Kitchen! Fabulous appliance package including a SUBZERO refrigerator, WOLF Steam oven for cooking quickly while locking in moisture, WOLF induction cooktop, COVE dishwasher, & SUBZERO wine cooler. Quartz counters & custom cabinets. Entire home has been updated including flooring, interior paint, new baths w/ quartz counters & tile in 2022. Gorgeous oversized pie shaped yard w/ RV gate & slab, new salt water pool system & beautiful tropical oasis, mature trees including lime, oro blanco grapefruit, lemon, avocado, blood orange, apricot, pomegranate, banana plant, passion fruit & garden area all on drip. Smart thermostat system w/ A/C units just serviced. Great floor plan w/ main bedroom upstairs. Great closets. This home is fantastic & read Misting system. Powder room can convert to full bath and there is an area upstairs for another hall bath if buyer needs this. Don't miss the mini refridge in the kitchen with cabinet panels. Minutes from Nascar raceway and Cardinals stadium.

3846 S Big Sky Trail Flagstaff, AZ 86005

$740,000
4 Beds
2.5 Baths
1,860 SqFt
Status Active Under Contract
MLS # 6751111
Property Type Single Family Residence
Price Type --
Discover Flagstaff living at its finest in this meticulously maintained, custom-built single-owner home nestled within the coveted Ponderosa Trails community. Enjoy the privacy of the cul-de-sac location and the immediate convenience of the greenbelt and trails right out your doorstep. You will love all of the outdoor entertainment spaces, highlighted by an expansive multi-level deck, front and back flagstone patios, a built-in chiminea, and a custom-built table, ideal for hosting gatherings or simply relaxing in the trees. Inside, you'll find a well-appointed interior that's been lovingly cared for over the years. With three bedrooms upstairs and an additional bedroom on the main floor, this traditional floor plan will remain timeless for years to come. With its prime location and exceptional features, this home is a rare find. Don't miss this opportunity to make it yours!

23494 N 167th Lane Surprise, AZ 85387

$740,000 - 5Br/3Ba -  for Sale in Asante Phase 1 Unit 3, Surprise
Open House
$740,000
5 Beds
3 Baths
2,848 SqFt
Status Active
MLS # 6670550
Property Type Single Family Residence
Price Type --
Prepare to meet your forever home! This stunning corner lot residence is conveniently situated across from Asante Community Park, offering an ideal family-friendly setting. Unwind in your custom sparkling pool, designed with your utmost comfort in mind, featuring both heating and cooling systems for year-round enjoyment. With over 2,800 sqft you are given plenty of opportunity to create everlasting memories with your loved ones. Discover a hidden treasure within the home, a secret workshop integrated with the fifth bedroom, delivering an undeniable 'wow-factor'. You are not going to want to skip this home! Ask about how to convert the home into a 3 car garage!

2539 E Geneva Drive Tempe, AZ 85282

$739,999
4 Beds
2 Baths
2,235 SqFt
Status Active
MLS # 6765799
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning, fully renovated property offers modern luxury and convenience at every turn, ensuring a turnkey living experience. The open-concept living and dining area is filled with natural light, creating an inviting atmosphere for relaxation and entertainment. Located just a few minutes from Phoenix Airport and 4 miles from the ASU campus and Cubs spring training facility, this home provides easy access to major highways, including the 101, 60, 202, and Interstate 10. Indulge your culinary passions in the gourmet kitchen, equipped with high-end GE Café appliances, a 36' 6-burner stove, sleek cabinets, granite countertops, and elegant sinks and fixtures. Dive into your refreshing pool, recently resurfaced with pebble tech and complemented by a ... new filter and pump. The backyard features heat-reducing deck paint, updated hardscaping, and a misting system for summer comfort. Recent upgrades include an updated electrical panel and solar system (2022), a roof (2022), a water heater (2022), and upgraded ductwork for the HVAC system (2024). The master bedroom boasts a sliding glass door that opens directly to the pool area. Experience luxury with all-new flooring throughout, fresh interior paint, new door hardware, and wood shutter window coverings. Modern conveniences include LED recessed lighting, updated electrical outlets with dimming switches, and new ceiling and exhaust fans in the remodeled bathrooms. Feel secure with an ADT security system and enjoy the newly insulated 2-car garage. The property features new exterior paint, LED lighting, and beautifully landscaped grounds, creating stunning curb appeal. An automatic sprinkler system maintains the lush gardens, and the covered patio is equipped with misters for added comfort. A built-in barbecue cooking area makes outdoor gatherings a breeze. This home seamlessly blends style and functionality, perfect for entertaining and everyday living. Don't miss your chance to own this modern oasis, complete with every upgrade you could wish for! It also presents a fantastic opportunity as an Airbnb or second home, with an option to purchase most of the interior furniture.

7302 E Solano Drive Scottsdale, AZ 85250

$739,999
3 Beds
2 Baths
2,644 SqFt
Status Active
MLS # 6728541
Property Type Townhouse
Price Type --
A MUST COME SEE IN DESIREABLE BRIARWOOD! BEAUTIFUL VIEW OF CAMELBACK MOUNTAIN! This is a spacious well maintained home has new entire roof with transferable warranty, Both HVAC units replaced 3 years ago. Entire interior painted, new door handles throughout, Upgraded light fixtures, upgraded bathroom faucets, New dual paned back door with security screen, New fan in patio, Garage door serviced within last year, Triple sided fireplace, Slate tile and fully landscaped backyard . Great quiet location Large corner lot 2 miles north of downtown Scottsdale and all of its amenities, Shopping with walking distance and bike paths nearby. Close to Scottsdale Fashion Square within 1.5 miles without all the traffic. Land Lease is 1/10th of 1 % of the sales price. PLEASE CALL FOR DAYS ON MARKET X

5725 S 101st Street Mesa, AZ 85212

$739,999 - 4Br/3Ba -  for Sale in Cadence At Gateway Phase 3 Parcel U, Mesa
Open House
$739,999
4 Beds
3 Baths
2,021 SqFt
Status Active
MLS # 6770781
Property Type Single Family Residence
Price Type --
This 4 bed/ 3 bath Corinth by Toll Brothers is located in the beautiful master-planned community of Cadence. This home boasts a covered entry & patio, and has well been appointed with designer upgrades in the inviting extended foyer, the spacious great room, casual dining area, and spacious covered rear patio. The gourmet kitchen is complete with Stainless Steel Appliances, a large center island with breakfast bar, plenty of counter and cabinet space, and an ample pantry. The primary bedroom suite is has a huge walk-in closet and spa-like upgraded primary bath, with dual-sink vanity, and a large luxe shower. Secondary bedrooms feature sizable closets, one bedroom has it's own private full bath and two with a shared full hallway bathroom. The resort style backyard has artificial grass and extended patio for the kids to play, BBQ or entertain friends and family. This home is located in the most gorgeous master-planned community in town. Complete fitness center, resort-style pools, community center, indoor game room, tennis, volleyball, bocce and basketball courts, sport fields, shaded play areas, ramadas, a dog park, and a café-style hang out. Hurry on over as this home will not last!

16846 W Hilton Avenue Goodyear, AZ 85338

$739,998 - 5Br/5Ba -  for Sale in Canyon Trails Unit 4 South Parcel E, Goodyear
Open House
$739,998
5 Beds
4.5 Baths
4,670 SqFt
Status Active
MLS # 6697514
Property Type Single Family Residence
Price Type --
Looking for a new home? You've found it! This fantastic 5 bed, 4.5 bath residence now on the market is for you! Featuring great curb appeal, a low-care front yard, and 2 garage spaces! Inside you'll find a sizeable living area and formal dining room that are sure to delight your guests. The kitchen is comprised of ample cabinetry w/granite counters, a walk-in pantry, all the built-in appliances you'll need for home cooking, and a lovely island. Don't forget about the cozy loft, where you can spend a relaxing Sunday afternoon! Discover a primary bedroom boasting a walk-in closet, private sitting area, and a full ensuite w/dual sinks. Finally, the wonderful backyard includes a covered patio and a sparkling blue pool perfect for the coming Summer days! What are you waiting for? Act now!

695 W Estrella Drive Gilbert, AZ 85233

$739,990
5 Beds
3 Baths
2,974 SqFt
Status Active
MLS # 6755995
Property Type Single Family Residence
Price Type --
This N. facing nearly 3000 sq ft spacious home with 5 bedrms&3full baths offers enough space as the secondary bdrms are also large with ample closet space. Master Suite is huge with a pvt balcony, a spacious master bath & a huge walk in closet. A convenient guest bedrm is located downstairs with a full bath with new granite top. Downstairs bdrm can also be used as a Den. All bdrms have ceiling fans. The separate living area, dining area &the family room allows the family to spread out & be comfortable. The kitchen is open and has recently been upgraded with new granite counter tops & has enough cabinets to provide ample storage. The kitchen opens to the breakfast nook & flows into the expansive family room. The 3 car garage provides abundant storage for whose to love to organize & has a sink for cleanup. The expansive covered Patio with misters is shaded by beautiful trees which helps to keep the house cool as well. The sparking pool, the serene back yard, & the citrus fruit trees are a haven for family gatherings. Conveniently located close to shopping, restaurants, golf courses and freeways (202 and I-60), A+ Gilbert Schools and nestled in a quiet and serene neighborhood make this house a must see! Buyers and Buyers agent to verify all facts that are material and important to them.

22444 E Orchard Lane Queen Creek, AZ 85142

$739,990
4 Beds
3 Baths
3,220 SqFt
Status Active
MLS # 6690240
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender plus additional 2% of base price or total purchase price, whichever is less, is available to be used toward closing costs, pre-paids, rate buy downs, and/or price adjustments. The Enchantment series resides within the sought-after Harvest community, nestled in its own gated enclave. Positioned conveniently opposite swimming pools, a catch-and-release lake, and a park, it offers a serene retreat away from the hustle and bustle yet remains close to shopping and entertainment amenities. The spacious kitchen, complete with an island and pantry, caters perfectly to entertaining or unwinding. Located next to open space at end of the street. Don't let this opportunity pass you by.

26117 S 225th Way Queen Creek, AZ 85142

$739,990
4 Beds
2.5 Baths
2,669 SqFt
Status Active
MLS # 6773419
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender. The Majesty series, nestled in the sought-after Harvest community, offers its own private gated area. Ideally situated across from the pools, catch-and-release lake, and green park, it provides a peaceful retreat while staying close to shopping and entertainment. With an oversized lot and double gate, the layout is perfect for entertaining or simply unwinding. The charming courtyard entry invites you in—don't miss out.

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