#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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2121 W Sonoran Desert Drive Unit 45 Phoenix, AZ 85085

$635,995
2 Beds
2.5 Baths
1,854 SqFt
Status Active
MLS # 6728641
Property Type Townhouse
Price Type --
This beautifully crafted villa offers 1,854 square feet, 2 primary suites, and 2.5 baths. Tall windows in the great room allow for an abundance of natural light. Designer-appointed features throughout. Contemporary neutral paint colors throughout makes this home ready for you to add your personal touches. Explore everything this exceptional villa has to offer

9310 S 40th Drive Laveen, AZ 85339

$635,490
4 Beds
3 Baths
2,835 SqFt
Status Active
MLS # 6747469
Property Type Single Family Residence
Price Type --
PHOTOS ARE OF MODEL HOME! Find all the room you need in this thoughtful home design. To one side of the foyer is a game room with a secondary bedroom on either side plus a secondary bathroom. The owner's suite is spacious and features two walk-in closets and a spa-inspired bathroom with access the laundry room. There is also an additional secondary bedroom and bathroom down the hall from the owner's suite. The heart of the home is an open living area that brings the kitchen, dining room and Great Room together effortlessly, plus it extends to the covered patio. Our beautiful Aurora plan boasts luxury Chef Platinum features such as quartz counter tops , Sonoma Maple Linen (White) cabinets, and 8 x 36 tile flooring. A copy of the public report is available on the ADRE's website

23176 W Skinner Road Wittmann, AZ 85361

$635,000
4 Beds
2 Baths
2,242 SqFt
Status Active
MLS # 6731535
Property Type Single Family Residence
Price Type --
Highly upgraded 4 bedroom 2 bath 3 car garage on an Acre lot! NO HOA! This Beautiful home comes with Quartz counter tops, large center island, tile backsplash, built-in microwave, stainless steel hood, 8' doors and 4'' baseboards, designer tile and upgraded lighting. Split floor plan, 2 walk-in closets in Master.. Located in a very nice area just minutes from Surprise and Wickenburg.

302 W Oak Avenue Unit 1 Flagstaff, AZ 86001

$635,000
3 Beds
2.5 Baths
1,213 SqFt
Status Active
MLS # 6730466
Property Type Single Family Residence
Price Type --
TO BE BUILT...Welcome to modern living in the heart of Flagstaff - a collection of contemporary detached homes that redefine luxury and convenience. Nestled against the backdrop of the stunning mountains, step into a world where architectural brilliance meets nature's beauty. The community boasts a sleek and contemporary design that seamlessly integrates with the natural surroundings. Plentiful glass allows ample natural light to flood the interiors, creating a harmonious blend of indoor and outdoor living. Clean lines, high ceilings, and thoughtfully designed spaces provide an open and airy atmosphere making each home a sanctuary of modern sophistication. Wake up to the awe-inspiring sight of the mountains right outside your window (Select Lots Only). Whether you're sipping your morning coffee on the patio or enjoying a quiet evening indoors, the breathtaking scenery is a constant companion, creating a sense of tranquility and connection with nature. Embrace the convenience of city living without sacrificing the serenity of a mountain retreat. The community is ideally located within a short distance to downtown Flagstaff with easy access to the Urban Trail System (FUTS), allowing residents easy access to vibrant shops, eclectic restaurants, cultural attractions, and lively entertainment. Enjoy the best of both worlds - the bustling energy of city life and the peaceful seclusion of your private mountain haven. Step inside and experience a harmonious blend of form and function. The interiors are adorned with high-end finishes, contemporary fixtures, and premium materials. The open-concept layouts create a seamless flow between living, dining, and kitchen areas, perfect for both entertaining guests and cozy family nights. Invest in more than just a home - invest in a lifestyle. These bungalows offer not just a residence but a secure investment in the future. The combination of prime location, modern design, and proximity to downtown Flagstaff, Flagstaff Medical Center, Flagstaff Elks Lodge, Jay Lively Ice Arena, Buffalo Park, Basha's Grocery Store, and many schools ensures a high standard of living and potential for long-term value appreciation. There are a total of 13 available lots, any of the three attached plans will work on any of the available lots.

16528 W Isleta Court Surprise, AZ 85387

$635,000
2 Beds
2.5 Baths
2,300 SqFt
Status Active
MLS # 6677181
Property Type Single Family Residence
Price Type --
Welcome to this 2300 sq/ft furnished, Mission model home located in Sun City Grand (The Grand) a 45+ Active Adult Resort Style Community. Open site-lines are evident upon entering into the great room w/gas fireplace and picture windows. A Large Updated Kitchen with 2 Breakfast /Entertaining Bars with An Expanded Island & Granite Counter tops, S/S Appliances, Roll-out shelves, Large Pantry & plenty of Cupboard storage. Large Dining Space with Bay Window Overlooking the Pool. A Nice sized Office/Den with Built-in Double Desks w/large window situated between the Primary Suite & the Private Guest Suite. Master bath has a large shower, Double Sinks & Large Walk-in closet. The Party begins upon entering the Outdoor Covered Patio w/ Pebbletec pool & Baja Deck, Gas Grill, & Patio Seating that create an Entertainer's Delight! Home also boasts a Large Laundry room w/ storage; Powder Bath; a Second Dining area; Ceiling Fans throughout; Central Vacuum; Soft Water. The Leased Solar Panels (non-escalating transferable lease), HVAC (2 units) replaced in 2017, Hot Water Tank replaced in 2020, installation of Patio Misters in 2020, and the 2-Car Garage plus Golf Cart Garage!! Low cost nonescalating solar is $106.30 per month. The Grand is home to 4 championship Golf Courses, 2 Rec Centers, 5 pools, spas, 2 Large Exercise Rooms, Indoor Walking Track, Auditorium, the New Maple & Rye Restaurant, Banking, CVS Pharmacy, along with activities, trips, clubs and much more. Home is Vacant and Easy to Show. Don't Miss This on Your Tour!

17603 N Lindgren Avenue Sun City, AZ 85373

$635,000
2 Beds
2 Baths
1,999 SqFt
Status Active
MLS # 6712021
Property Type Single Family Residence
Price Type --
Beautifully Remodeled including the windows. Open Floor Plan, Golf Course Property With Pool. Kitchen Includes Newer Upgraded Custom, Hickory Cabinets, Stainless Steel Appliances and Newer Wood Tile Flooring. Walk-in Closets In Both Bedrooms. Fully Remodeled Guest Bathroom. Air Cooled Laundry Room/pantry Off Garage With Extra Storage, Bonus Den/office off Main Bedroom. and there are 2 walk-in closets in this room. The main bedroom has a door to the outside. The Pool is Solar Heated with an additional heating feature. The Pool has a pebble-tec type coating.. There is a lovely Waterfall Feature. The backyard landscape has Astro Turf. The front courtyard is fully fenced for a cozy retreat. Come see this lovely cheerful house, just waiting For You to Call it Home! Owner/Agent

14027 N 32nd Street Phoenix, AZ 85032

$635,000
4 Beds
3.5 Baths
2,197 SqFt
Status Active
MLS # 6742734
Property Type Single Family Residence
Price Type --
Welcome to this charming Phoenix home! With its inviting curb appeal, RV gate, and delightful fountain, you'll feel right at home from the start. Inside, you'll find stylish wood-look floors and a soothing color palette in a spacious great room featuring a chic chandelier and cozy fireplace. The pristine white kitchen boasts shaker cabinets, stainless steel appliances, a beautiful tile backsplash, quartz counters, and a breakfast bar island. The romantic primary suite offers a walk-in closet and a private bath. Relax on the covered patio with mountain views and entertain in the expansive backyard

20750 N 87th Street Unit 2120 Scottsdale, AZ 85255

$635,000
2 Beds
2 Baths
1,356 SqFt
Status Active
MLS # 6745602
Property Type Townhouse
Price Type --
Scottsdale Living at its finest in coveted Grayhawk! Recently updated with new luxury plank vinyl flooring, new interior paint, refreshed kitchen cabinetry & new stainless steel appliances, this perfectly appointed townhome in gated Encore at Grayhawk offers mountain views & a perfect location just steps from amenities, shopping & dining. From the ground floor foyer and immaculate 2-car garage w/ new epoxy floor, spacious second level living awaits. Natural light washes this end unit's open floor plan featuring living & dining area with cozy gas fireplace along with nicely appointed kitchen and casual dining bar. The primary retreat presents a stunning McDowell Mountain backdrop from its French Doors & balcony, and opens to a nicely appointed bath with separate tub & walk-in shower plus large walk-in closet. There is also a second guest room with adjoining bath to the hall. Stacked laundry area will accommodate full size units. Relax on the balcony facing common area and enjoy our Arizona sunsets, or go to the fantastic resident clubhouse for a workout and a swim. Welcome Home!

16525 W Sheridan Street Goodyear, AZ 85395

$635,000
2 Beds
2.5 Baths
2,066 SqFt
Status Active
MLS # 6745341
Property Type Single Family Residence
Price Type --
Paid off solar! Beautiful, very well maintained home in Pebble Creek golf Course community! New top of the line AC unit with a 10 year warranty. Enjoy low maintenance backyard, with brand new pavers and turf! Corner lot with great curb appeal, epoxy floors in 2.5 car garage. Bonus versatile room which can be used as office/ den or spare room. Two large master suites on opposite ends of house. Enjoy all this beautiful gated community has to offer, including pools, club house, restaurants/bar, coffee shop etc.

10649 E Lomita Avenue Mesa, AZ 85209

$635,000
3 Beds
2.5 Baths
2,628 SqFt
Status Active
MLS # 6759011
Property Type Single Family Residence
Price Type --
Gorgeous Home in The Villages of Eastridge! Discover this beautiful 3-bedroom+den(with Murphy bed)& Loft 2.5-bathroom home offering a versatile floor plan that's perfect for a home office, guest space, or a potential 4th bedroom! Begin your experience by stepping into a private, courtyard. Inside, the expansive eat-in kitchen is a chef's dream, equipped with a sleek induction cooktop, Samsung S/S refrigerator-less than 2 years old, and beautiful quartz countertops. The kitchen flows seamlessly into an open formal dining room & family room, creating an inviting space for gatherings and everyday living.This home is filled with custom touches, including fresh interior paint, detailed custom trim moldings, stylish lighting fixtures, newer carpet, Low E windows & new exterior paint. See more. Upstairs, unwind in the oversized master suite with an en-suite bathroom complete with dual vanities, a large walk-in closet, a separate shower, and a luxurious soaker tub. Two additional bedrooms, a full bathroom, and a cozy loft space provide plenty of room for everyone. Your private backyard oasis awaits with a 9-foot Pebble Tec diving pool featuring a fountain, a new turf lawn, a fire pit, and a lockable dog door perfect for enjoying Arizona's beautiful weather year-round. Parking and storage are no issue with the extended 3-car garage that comfortably fits a truck, complete with built-in cabinets and a widened driveway slab. The seller also has plans available for converting the third car garage into a casita, offering even more flexibility to suit your needs. Convenient access to the 60 and 202 freeways, and proximity to shopping, movies, and excellent school choices.

3951 W Talc Drive San Tan Valley, AZ 85144

$635,000
4 Beds
3.5 Baths
2,913 SqFt
Status Active
MLS # 6756189
Property Type Single Family Residence
Price Type --
Welcome to this beautiful 4 bedroom, 3.5 bath home in the heart of San Tan Valley! This property features modern finishes throughout, including a 2-car extended garage allowing space for up to 4 cars. The spacious kitchen boasts granite countertops, stainless steel appliances, and a large island—perfect for entertaining. You'll also find a rare builder upgrade by Toll Brothers—an extra sliding window in the kitchen, a feature no longer offered, along with an extended patio for seamless indoor-outdoor living. Relax in the inviting living room or step outside to your private backyard oasis with low-maintenance landscaping. Conveniently located near shopping, dining, and parks, this home has it all! A must-see in a fast-growing community

820 N 8th Avenue Unit 14 Phoenix, AZ 85007

$635,000
3 Beds
2.5 Baths
1,476 SqFt
Status Active
MLS # 6767246
Property Type Townhouse
Price Type --
Experience modern luxury at 820 N 8th Ave, Unit 14 in the heart of downtown Phoenix! Built by the award-winning Landmark Builders, this sophisticated residence showcases their commitment to quality with high-end finishes, open-concept living, and smart home technology. The kitchen features premium appliances, while the spacious master suite offers a fully upgraded closet and luxurious bathroom. Outside, enjoy a private, low-maintenance oasis with custom pavers and upgraded turf. Moments from top dining, shopping, and entertainment, this home offers the best of urban living in an exclusive, impeccably crafted space.

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