#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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3002 W Josiah Trail Queen Creek, AZ 85144

$684,990
4 Beds
3 Baths
2,481 SqFt
Status Active
MLS # 6750855
Property Type Single Family Residence
Price Type --
Welcome to this beautifully maintained 4-bedroom, 3-bathroom home with an office/den which is nestled in the mountains of San Tan Valley, AZ. This spacious property boasts a modern open floor plan, with a gourmet kitchen featuring upgraded kitchen cabinets and quartz countertops. The large master suite offers a private retreat with a walk-in closet and luxurious ensuite bathroom with a claw foot soaking tub. Enjoy the expansive views of the valley from the living room and outdoor patio. The large 1.25 acre backyard is perfect for entertaining, storing your RV and many endless possibilities. Located in a quiet, family-friendly neighborhood, where your home is the last home on the street which is perfect for your added privacy. This home is a must-see!

3054 E Rochelle Street Mesa, AZ 85213

$684,900 - 4Br/3Ba -  for Sale in Lehi Crossing Phases 4-5, Mesa
New
$684,900
4 Beds
3 Baths
2,776 SqFt
Status Active
MLS # 6779469
Property Type Single Family Residence
Price Type --
Welcome to this charming two-story home located in the desirable gated community of Lehi Crossing. Featuring a large kitchen island with quartz countertop situated near a wall of floor-to-ceiling sliding doors that open to a backyard oasis with saltwater pool, pergola and low maintenance turf, this home is perfect for entertaining. The downstairs guest room can be used for company or multi-generational living and an upstairs loft offers a versatile space for your family's needs. The air conditioning units, RO system, and salt cell for pool have recently been replaced. This home is conveniently located to freeway access and near community parks and walking paths.

3466 E Azalea Drive Gilbert, AZ 85298

$684,900
4 Beds
2.5 Baths
2,177 SqFt
Status Active
MLS # 6735445
Property Type Single Family Residence
Price Type --
Beautiful, highly upgraded home in desirable Bridges at Gilbert community, located near Gilbert Regional Park and great schools. This bright and modern home features one bedroom downstairs, great for a home office or entertaining. The living room is complimented by a beautiful kitchen with kitchen island, granite counter tops, and stainless steel appliances. Upstairs is floored with luxury vinyl with hardwood appearance, two large bedrooms, a comfortable master suite with a rain glass walk-in shower, a laundry room with washer, dryer and cabinets, and a loft. All windows are covered with shutters. The garage has an epoxy floor, the soft water system is owned. The huge, resort-like backyard features a paved and covered patio as well as a gazebo, perfect for those hot Arizona summers. A built-in barbecue and a gorgeous, heatable and coolable pool invite you outside anytime of the year.

7037 N 11th Drive Phoenix, AZ 85021

$684,900
3 Beds
3 Baths
2,761 SqFt
Status Active
MLS # 6759247
Property Type Townhouse
Price Type --
RARE FIND with MID-CENTURY CHARM * This Quiet Hidden Gem boasts 3BR 3Ba 2G located in a peaceful cul-de-sac community of 12 homes offering a unique blend of privacy and 2,761 interior space. This home is attached at garage only, adjacent to the Greenbelt with a side yard entrance to an over 7,800 sf lot. The largest lot in this subdivision. Enter through a private gated courtyard entrance showcasing an outdoor sanctuary. The front door from this courtyard oasis opens onto a landing with a solid wood entry door, flanked by side light window panels. Upon entering the front foyer, you're greeted by a skylight above a cornered mirrored wall, expanding the space that introduces you to the bedroom wing on the left and the eat-in kitchen to the right with a long gallery hall. . . The spacious eat-in kitchen boasts solid oak cabinetry, deep cabinets and shelves, with ample storage, including a large walk-in pantry. It features a built-in wall oven, built-in microwave, and both a center island and peninsula island, providing abundant counter space and a lighted tray ceiling, adding a touch of elegance and warmth. The breakfast nook is beautifully illuminated by natural light from sliding doors that lead to the front courtyard, complete with floor to ceiling custom built-in shelf case. The spacious Primary suite offers luxury with sliding door exit to front courtyard, 2 closets, one is walk-in while the other is lengthy and mirrored in the dressing area. The ensuite bath is light and bright with 2 skylights, dual sinks, sunken tub & private toilet room. The third bedroom (split), currently used as a library/den with an attached office, is perfect for multigenerational living or a mother-in-law suite. It has its own exit to the covered back patio, entrance from the garage, and a 3/4 bath. The office can also be converted into a spacious walk-in closet, providing endless possibilities for this guest suite space. The living room features near floor-to-ceiling custom windows, framing picturesque views of the lush backyard and filling the space with natural light. A central French door provides easy access to the outdoors, inviting you to step into the serene surroundings. The formal dining room is enhanced by a stunning 10ft high tray ceiling, illuminated with soft lighting, creating a grand yet intimate atmosphere. Together, these rooms provide a perfect balance of grandeur and charm, ideal for both everyday living and elegant entertaining. The private backyard features a block fenced lot surrounded by lush grass, mature shade & citrus tree, a storage unit, and the only property with alley access. This home is brimming with custom features and has been meticulously maintained by its original owner. Wood accent trim throughout and custom triple and dual pane wood-framed windows, in excellent condition, ensuring energy-efficiency and quiet living. HVAC units replaced in 2015 and 2017. Foam roof replaced in 2016. Patio Roof replaced Sept 2024. Home features inside laundry, water softener and whole house water filtration system. Ample storage throughout the home. HOA is self-managed. Monthly Fee covers cable, internet, Greenbelt & Main entrance maintenance and street maintenance. The home is well-maintained and ready to be enjoyed as-is, with only cosmetic updates needed to suit your personal style. The primary improvement required is replacing the carpet and interior paint, allowing you the flexibility to move in comfortably and update the space to your liking over time. Fantastic Uptown Phoenix location. Quick and easy freeway access. Minutes to downtown shops, dining and entertainment. This home is truly a must-see to fully appreciate its charm and potential. Don't miss this one - See it Today!

35925 N 30th Drive Phoenix, AZ 85086

$684,500
4 Beds
2 Baths
2,350 SqFt
Status Active
MLS # 6754194
Property Type Single Family Residence
Price Type --
Experience luxury living in this newly remodeled home featuring brand-new cabinets, state-of-the-art appliances, and elegant countertops. The remodeled bathrooms offer a spa-like retreat, while the spacious 3-car garage provides ample storage. Enjoy the benefits of a water softener and relax in the sparkling pool or chip & putt with your private putting green. Nestled in a prime Phoenix location, you'll have easy access to top-rated schools, shopping, dining, and entertainment.

33337 N Maverick Mountain Trail San Tan Valley, AZ 85144

$684,369
4 Beds
3 Baths
3,124 SqFt
Status Active
MLS # 6775177
Property Type Single Family Residence
Price Type --
Elegant new, Spanish-style home featuring 4-bedrooms, 3-bathrooms, a game room, an attached 3-car garage, and designer selections throughout! The kitchen boasts Gourmet appliance including a gas cooktop, extended kitchen cabinet, quartz countertops, and matching quartz kitchen back splash. Other upgrades include maple rye cabinets with 42'' uppers, 12 x 24 tile, upgraded carpet, and a roomy frameless walk-in shower with a rain can shower head. The exterior of the home boasts a covered patio with a gas line for a future BBQ and pavers at the driveway, walkway, and courtyard.

1075 E Shangri La Road Phoenix, AZ 85020

$684,000
3 Beds
3 Baths
2,344 SqFt
Status Active
MLS # 6692262
Property Type Single Family Residence
Price Type --
OWNERS HAVE OWNED HOME FOR ALMOST 30 YEARS AND THIS WAS THEIR VACATION HOME, 3-4 MONTHS A YEAR, LIGHTLY LIVED IN, BEAUTIFUL VIEWS AND GORGEOUS EXTERIOR, HOME IS LUSH WITH LANDSCAPING AND HEATED POOL/SPA, THREE BEDROOMS AND DOWNSTAIRS DEN/OFFICE, MASTER SUITE UPSTAIRS WITH LARGE WALK IN CLOSET AND LARGE BALCONY OVERLOOKING THE BEAUTIFUL BACKYARD, SEP SHOWER AND TUB, ONE OTHER BEDROOM UPSTAIRS AND ONE BEDROOM DOWNSTAIRS, VERY HIGH CEILINGS IN ENTRY, FORMAL LIVING AND DINING ROOM, LARGE EAT IN KITCHEN WITH GRANITE AND VIEWS TO THE FAMILY ROOM WHICH HAS A FULL WALL FIREPLACE AND TV ON MANTLE, TWO CAR GARAGE, GEORGEOUS CURB APPEAL,

1326 N Central Avenue Unit 404 Phoenix, AZ 85004

$684,000
1 Bed
2 Baths
1,491 SqFt
Status Active
MLS # 6748645
Property Type Apartment
Price Type --
Step into the heart of downtown Phoenix and discover this sleek and sophisticated loft! With its open layout and soaring ceilings, this modern architectural gem is the epitome of urban chic. Enjoy surrounding views of the city skyline and mountain ranges from your private rooftop terrace! This is the perfect opportunity to own a piece of downtown Phoenix's vibrant energy! Amenities include Secured entrance with personalized access. Gated Parking, Community Pool/Gym. Private Rooftop. Open Floor Plan. Move in ready or upgrade to your dream loft!

17813 W Georgia Avenue Litchfield Park, AZ 85340

$683,595
3 Beds
3 Baths
2,392 SqFt
Status Active
MLS # 6774401
Property Type Single Family Residence
Price Type --
MLS#6774401 January 2025 Completion! The 55-RV2 is a thoughtfully designed single-story floor plan, offering 2,392 sq. ft. of living space with 3 bedrooms, 3 bathrooms, a 2.5-car garage, an RV garage, and a versatile flex room. With plenty of garage space, this home ensures you have all the room you need for vehicles and outdoor gear. The open-concept kitchen, gathering room, and dining area create a warm, inviting space perfect for cooking, entertaining, and family time. Enjoy seamless indoor-outdoor living with a covered outdoor area. The owner's suite features a generous walk-in closet and double sinks in the bathroom, offering both comfort and convenience. Your dream home is waiting here. Structural options include: extended covered patio, 16 foot slider at gathering, prewire for HVAC mini split at RV garage, garage service door.

4531 E Aspen Way Gilbert, AZ 85234

$683,000
4 Beds
3 Baths
3,746 SqFt
Status Active
MLS # 6669518
Property Type Single Family Residence
Price Type --
Welcome to this spacious 5-bed, 3-bath home w/ 1 bedroom & full bath downstairs! This house features HUGE bedrooms, extra closets & storage, oversized 3-car garage, large laundry room with utility sink & storage cabinets, new stove top, stainless steel appliances, walk-in pantry, tile & ceiling fans throughout. Cozy up on cooler evenings by 1 of the 3 gas fireplaces. The backyard features a sparkling pool, built-in BBQ, fireplace, extended covered patio & dog run. The primary bedroom is a true retreat, with 2 walk-in closets, fireplace & a bathroom with a separate soaking tub, walk-in shower, & double sinks. Enjoy the luxury of space & organization with tons of storage options throughout the home. The remaining bedrooms are generously sized with huge closets.

6002 W Park View Lane Glendale, AZ 85310

$683,000
4 Beds
3 Baths
3,393 SqFt
Status Active
MLS # 6699818
Property Type Single Family Residence
Price Type --
Motivated Sellers!! Spacious, Well Maintained Home in Gated N Glendale Community. This 4 Bed, 3 Full Bath Home with Loft and 3-Car Garage is Bright and Open with Private Pool on Corner Lot. Downstairs guest bedroom has adjacent full bath and Primary suite has enormous closet and large adjacent loft-perfect for playroom or home office. Bright, open kitchen has granite countertops, tons of storage and honey-toned wood cabinetry, features a gas range, stainless appliances and walk-in pantry and family room includes cozy gas fireplace. Charming, tranquil neighborhood has mature trees, green belts, parks, walking paths and gorgeous mountain vistas. Walking distance to Las Brisas Elementary, quick access to I17 and 101 freeways, TSMC and the vibrant N. Phoenix district.

20253 W Hollyhock Street Buckeye, AZ 85396

$682,995
4 Beds
3.5 Baths
2,840 SqFt
Status Active
MLS # 6717566
Property Type Single Family Residence
Price Type --
Part of the Modern Living collection, The Darius provides a sophisticated and accommodating ranch-style layout. In addition to a lavish primary suite with a roomy walk-in closet and attached double-sink bath with an upgraded deluxe tile shower-this home includes a second primary suite with an adjacent living room, perfect for multi-generational living. You'll also enjoy a 3-car garage, a study, a great room with an adjacent covered patio-featuring multi-slide doors, two additional bedrooms that share a jack and jill bathroom, and an inviting gourmet kitchen with a generous island, built-in pantry, 42'' white cabinets with brushed nickel pulls, quartz countertops, tile backsplash, GE Plus stainless-steel appliances with chimney hood and 36'' gas cooktop and an adjacent dining nook. This home has 9 x 35 tile flooring with carpet only in the bedrooms, brushed nickel hardware, lighting and faucet packages throughout, pendant lighting at the kitchen island, and a full wet bar with upper and base cabinets in the guest living room. In addition, 10 ft ceilings, two-tone paint, ceiling fan prewires in the bedrooms, great room, study and covered patio, soft water loop in the garage, laundry sink pre-plumb, garage service door, paver driveway and walkway, front yard landscaping and exterior coach lights are also included. This home is situated on a 9070 square foot, North facing corner lot with a double side gate.

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