#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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2583 S Quaintance Street Gilbert, AZ 85295

$650,000
3 Beds
2.5 Baths
1,862 SqFt
Status Active
MLS # 6774352
Property Type Single Family Residence
Price Type --
Gorgeous home in the sought-after Cooley Ranch community! This light & bright home with soaring ceilings offers an open concept floor plan, neutral pallet, wood-look tile flooring, recessed lighting, & sleek modern finishes throughout. The gourmet kitchen boasts granite counters, a gas stovetop, top-notch stainless steel appliances, RO System, & a walk-in pantry. Unwind in your primary retreat boasting an impressive bath with dual vanities & a walk-in shower. Enjoy AZ living in your updated backyard with a covered patio, pavers & synthetic grass. 2-car garage & tankless water heater. You'll love this private community with amenities like biking paths, pool, rec center, sports courts, & more. Prime Gilbert location with quick access to highways, schools, shopping & dining!

1780 S Yellow Brick Road Chino Valley, AZ 86323

$650,000
3 Beds
3 Baths
2,569 SqFt
Status Active
MLS # 6773298
Property Type Single Family Residence
Price Type --
Fantastic custom built home on 2.61 acres with panoramic mountain views! This 3 bedroom, 3 bathroom also has a den/office area and wonderful back courtyard offering outdoor entertaining space including built-in BBQ and huge views of Granite Mountain. Living room has fireplace and is adjacent to the open kitchen offering granite counter tops, pantry, tile floors, newer appliances and access to back courtyard. The large owners suite offers dual walk in closets, separate his/her vanities, large travertine shower & separate garden tub & private toilet room w/sink. The oversized owners bedroom and access to back courtyard. Spacious 2nd & 3rd bedrooms. 2.61 acres offers plenty of space for barns, arenas, extra garages, workshops, etc. The attached extra deep garage has epoxy floor finish.

24077 N 160th Avenue Surprise, AZ 85387

$650,000
5 Beds
4.5 Baths
3,445 SqFt
Status Active
MLS # 6773323
Property Type Single Family Residence
Price Type --
Price Correction! Through no fault of the Sellers, Buyer couldn't perform! This beauty is back on the Market! Stunning 5-Bedroom, 4.5-Bathroom Home in Prime Location! Welcome to your dream home! This brand new build offers the perfect blend of modern, comfort, and convenience. Located within walking distance to the community amenity center, including the Mary Lou Aquatic Center! 5 Spacious Bedrooms 4.5 Modern Bathrooms 3 Car Garage Gourmet Kitchen Open-Concept Living Area Finished Backyard

9443 E Riviera Drive Scottsdale, AZ 85260

$650,000
3 Beds
2 Baths
1,484 SqFt
Status Active
MLS # 6773744
Property Type Single Family Residence
Price Type --
This beautifully remodeled end unit patio home features a large private yard perfect for someone looking for low maintenance yet plenty of space and privacy. Updated porcelain and wood plank tile throughout! The well-equipped kitchen boasts stainless steel appliances, ample cabinet storage, double ovens and an induction range, perfect for culinary enthusiasts. The office, complete with built-in bookshelves and a beverage fridge, can easily be converted back into a third bedroom. The primary opens to the backyard, and has dual vanities and two spacious closets with built-in drawers and shelves. Set in a desirable neighborhood, this home backs up to the greenbelt and community pool, one of the best lots in the community. Don't forget about the new AC unit and water softener too!

2665 E Gillcrest Road Gilbert, AZ 85298

$650,000
3 Beds
2.5 Baths
2,658 SqFt
Status Active
MLS # 6774316
Property Type Single Family Residence
Price Type --
Beautiful 3 bedroom + downstairs office, 2.5 bath home in a great lake community with pool, gym, basketball courts, clubhouse, parks and children's play areas. This home features beautiful granite counters and sleek stainless-steel appliances. The primary bathroom offers a luxurious separate tub and shower and a double sink vanity, and a spacious walk-in closet to fulfill all your storage needs. Freshly painted walls and professionally cleaned carpets. The convenience of this location is unmatched with an elementary school conveniently located within the subdivision, and community amenities.

8640 W Monaco Boulevard Arizona City, AZ 85123

$650,000
3 Beds
4 Baths
3,536 SqFt
Status Active
MLS # 6773844
Property Type Single Family Residence
Price Type --
Beautiful Custom home w/Casita on the golf course! Enter thru Custom metal door w/Wrought Iron detail into beautiful, tiled courtyard w/gas fireplace. From the private courtyard you have access to a Bonus Room w/mini split, entry to private Casita/Guest House & entrance to main home. Another Custom Door welcomes you into the main living area w/soaring ceilings & gorgeous views of the backyard pool & golf course! Entertainers Dream w/Formal Dining, Great Room w/fireplace, Kitchen, w/gas cooktop, French Door Refrigerator, Butler's Pantry, Wine Rack, & a large Granite Island. Primary suite w/step up Garden Tub, Walk thru Shower, Separate Dual Vanities, & huge walk-in closet. Backyard Oasis w/Covered Patio, Pool, Spa, Outdoor Bath, RV Gate, RV Parking & Hookups. So many features - a must-see!

7479 E Pleasant Run Scottsdale, AZ 85258

$650,000
2 Beds
2 Baths
1,590 SqFt
Status Active
MLS # 6775570
Property Type Townhouse
Price Type --
SPOTLESS HOME in the PERFECT LOCATION! Don't miss this McCORMICK RANCH ''lock and leave'' home! Located in the heart of SCOTTSDALE. Walking and/or biking distance to the community pool and spa, community tennis and pickleball courts, and beautiful views of lakes on the greenbelt. Restaurants, grocery stores, coffee shops, boutique shopping, a drug store, and gym all close enough to walk to or drive to in under 5 minutes. Minutes from Mountain View Park and Community Center. Talking Stick Resort and 101 Freeway are minutes away. Easy access to Sky Harbor Airport and downtown Phoenix. This home truly has it all, with an extensive list of recent updates and improvements that make it a standout! Move-in ready, the open kitchen is equipped with granite countertops, stainless steel appliances, a Bosch dishwasher (2018), pendant lighting, and an island with a corner lazy susan for extra storage. The living area features a stunning granite hearth fireplace with a custom wood mantle and tile floors throughout. In addition to its beautiful aesthetic, this home has undergone significant upgrades, including a new heat pump, air conditioner, air purifier, and surge protector. The electric water heater and water conditioner have been replaced for optimal efficiency, and the roof has been recoated for added protection. The kitchen shines with a new sink, disposal, faucet, and granite backsplash. The office area has been custom-designed with a granite-topped desk, offering a functional and stylish workspace. The master bedroom features luxurious new carpet, and the home's windows have been replaced to improve energy efficiency. Spray foam insulation on the roof, along with updates to ceilings, walls, and doors, ensure that the home is well-sealed and comfortable year-round. Step out onto the Saltillo-tiled patio, complete with a built-in BBQ, fireplace, and small refrigerator, and enjoy the heated community pool and spa just steps away. This home is not only beautifully updated but fully equipped with modern conveniencesready for you to move in and enjoy!

136 N 11th Avenue Phoenix, AZ 85007

$650,000
5 Beds
4 Baths
1,720 SqFt
Status Active
MLS # 6775519
Property Type Single Family Residence
Price Type --
Versatile property offering a main home and two studio units. Primary home is a charming three bedroom two bath. Two attached studio units located in the back. Main house is month to month lease allowing a perfect owner occupant and investing opportunity. Live in the primary home and allow the two studio units to offset your mortgage by $1,918 per month! Primary unit is currently M2M at $1650. Flexible R-8 Zoning allows for six attached units to be constructed. This block has a great mix of new developments and historic homes. Property is located in the Woodland historic district, a vibrant and evolving area that is walking distance to Historic Grand Avenue, downtown campuses, and all the best dining and nightlife Phoenix offers!

29623 N 205th Avenue Wittmann, AZ 85361

$650,000
4 Beds
2 Baths
2,416 SqFt
Status Active
MLS # 6775482
Property Type Single Family Residence
Price Type --
Welcome to this stunning 4 BR, 2BTH home. It has an oversized garage with expansive bays. This property features a beautifully landscaped yard with an automatic irrigation system. The back yard is surrounded by a block wall with no-climb fence around property perimeter with an automatic gate situated on a 1.67 acre cul-de-sac lot. Plenty of room for horses or 4-wheeled toys. Built in 2018 by 1 owner/GC to the highest standards. Meticulously maintained and cared for, this move in ready home has no HOA making it an ideal choice for those seeking privacy and quality of life.

21632 N 58th Drive Glendale, AZ 85308

$650,000
4 Beds
2 Baths
2,388 SqFt
Status Active
MLS # 6776336
Property Type Single Family Residence
Price Type --
A beautiful, move-in ready home for sale in sought-after neighborhood of Arrowhead Lakes! The soaring 10'+ ceilings in the formal living room welcomes you in once you open the front door. Honey maple cabinetry in the kitchen, and all interior doors were custom-built honey maple doors. Huge primary bedroom with a patio door to the backyard oasis; tiled walk-in shower in primary bathroom with a jetted tub; RV gate, 3-car garage, fresh paints in common area, utility sink in the good size laundry room, and this house is sitting in a huge lot over 11,000 sqft in a cul-de-sac. A+ schools, convenient to shoppings, freeways and more. Come see this gem today!

40568 N Spotted Lane San Tan Valley, AZ 85140

$650,000
4 Beds
3 Baths
2,475 SqFt
Status Active
MLS # 6777852
Property Type Single Family Residence
Price Type --
Entertainers & Car Lovers take notice! Want to know why this home can be better than a new build? Move in ready is one reason, but having the window treatments and landscape completed are the major cost savers here. Plus this location is fantastic. Tucked away in a quaint neighborhood, but with all the new grocery stores and restaurants nearby. Beautiful, upgraded home with wood plank tile throughout. Amazing kitchen with a gas cooktop. Large kitchen island for entertaining, open to DR and family room. The home has solar & energy efficient thermostats. The 5 car garage shows off with an epoxy floor, built-in cabinets, and room for cars & toys. HOA approved RV parking with the RV Gate, Pad, and Hook Up.

43809 W Avalon Drive Tonopah, AZ 85354

$650,000 - 4Br/2Ba -  for Sale in N/a, Tonopah
New
$650,000
4 Beds
2 Baths
2,734 SqFt
Status Active
MLS # 6780132
Property Type Single Family Residence
Price Type --
This is the kind of property that everyone is looking for when searching for country life at its finest! Amazing floor plan with 4 large bedrooms and 2 full baths, plus an absolutely amazing game-room/media-room that has its own exterior doors to darling patio! Wonderful for entertaining guests! All new flooring throughout entire home, ceramic tile in living areas and luxury vinyl plank flooring in bedrooms. New interior paint and new exterior paint! Cozy fireplace that is the focal point for the open living-room and kitchen. But wait..theres more! Lets step outside to the mountain views that will blow you away! Literally ride out into the sunset! Fully fenced 2 acres perfect for the furry friends! Now the shop! The shop was just built in 2023. 2400 sqft. 7 vehicles can fit. Mezzanine! Mezzanine has stairs with gradual rise 6 for every 12 forward to ease when carrying heavy items up and down. There is a 30 amp, 50 amp, and (2)-20 amp sockets. (2) 10x10 doorways and 12x14 high RV door. 14' tall doorway has rollup door. Fully insulated. Hardwired internet in Garage. Heavy I-beam designed for hoisting. 2 large ridge vents. Garage will hold 4 cars and an RV, plus still has room for 22x27 shop space.

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