#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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8129 W Ross Avenue Peoria, AZ 85382

$599,900
4 Beds
2.5 Baths
2,337 SqFt
Status Active
MLS # 6759468
Property Type Single Family Residence
Price Type --
This amazing fully upgraded home in the heart of Fletcher heights has one of the largest pie shaped private lots in the subdivision. This one offers brand new LVP flooring throughout the entire first level, upgraded stainless steel appliances in kitchen, new quartz countertops, built in custom fireplace in great room, upgraded light fixtures throughout, custom master shower/tub, upgraded bathrooms throughout, and so much more. 4 bedrooms and loft upstairs, large great room floor plan downstairs, and RV Gate with huge slab behind the gate. Take one look at the photos and get your buyers in the car. This home on this lot will go fast!

15 W Palmcroft Drive Tempe, AZ 85282

$599,900
3 Beds
2 Baths
1,608 SqFt
Status Active
MLS # 6767877
Property Type Single Family Residence
Price Type --
Beautifully updated mid century gem with all the historic charm intact in the heart of downtown Tempe! Impeccably maintained with updates galore featuring 3 bed/2 baths, large professionally landscaped lot, award winning schools, walking distance to ASU, downtown Tempe and Gammage. Updates include: new roof, new Trane a/c, plantation shutters, professionally landscaped backyard including irrigation system, block wall/fence, gate, extended covered patio & large storage shed, new windows, interior and exterior doors, remodeled kitchen, stainless appliances, remodeled bathrooms, interior and exterior paint & newer water heater. Date Palm Manor is a historic designated neighborhood which reduces owner property taxes by half.

15975 W Laurel Lane Surprise, AZ 85379

$599,900
3 Beds
2 Baths
2,567 SqFt
Status Active
MLS # 6770459
Property Type Single Family Residence
Price Type --
SPARKLING POOL (backyard OASIS), HIGHLY UPGRADED Shea Homes built, 10' ceilings, Single Level, 3 beds PLUS double door ENCLOSED FLEX ROOM, w/RV gate in Greer Ranch North! Fall in love w/the HUGE & bright open floor plan enhanced by surround sound, tons of recessed lighting, 3 panel sliding glass door, wood-look tile flooring in all the key areas. Gourmet kitchen w/abundant white cabinetry, granite counters, prep island w/breakfast bar, tile backsplash, & SS appliances; wall oven & cooktop gas. Serene main retreat; ensuite w/dual sinks, JUMBO tiled walk-in shower w/TWO shower heads (rain) w/drying area, & walk-in closet. Tranquil backyard invites endless outdoor activities & relaxation, boasting covered patio, gazebo, fire pit & refreshing pool w/water feature. Snatch this GEM!!!

1252 E Brentrup Drive Tempe, AZ 85283

$599,900
3 Beds
2 Baths
1,875 SqFt
Status Active
MLS # 6772127
Property Type Single Family Residence
Price Type --
Convenient Tempe location with abundant upgrades throughout. Quartz countertops, refinished cabinetry, remodeled bathroom, laundry and hallways. New flooring in entry, great room, baths, laundry and hallways. New roof (replaced in 2021). New micro-pebble pool surface (2020) and new filter. Pergola covered patio with mist system and electric fireplace in great room. American standard 4-ton heat pump (2019). Insulated front door, French door with dual pane glass, Milgard dual pane windows, owned 6.3KW Photovoltaic solar system. Large lot with private backyard oasis to enjoy!

2002 W Turney Avenue Phoenix, AZ 85015

$599,900
3 Beds
3 Baths
2,118 SqFt
Status Active
MLS # 6772741
Property Type Single Family Residence
Price Type --
The possibilities are endless with this property, Large Family Home, PadSplit, Behavioral Health, Assisted Living, Sober Living, DDD, Corporate Rental, Traveling Nurse Rental, etc... For traveling nurses, there's 3 hospitals within 8 miles. At just a short drive to the 51 and I-17 and in between Camelback and Indian School, it's as centrally located as you could hope for. Talk about ready to go, it was fully remodeled from top to bottom and comes loaded with everything included.

3718 E Vallejo Drive Gilbert, AZ 85298

$599,900
3 Beds
2 Baths
1,832 SqFt
Status Active
MLS # 6773580
Property Type Single Family Residence
Price Type --
This home is nestled on a premium north/south lot with no rear neighbors, offering exceptional privacy. It features a stunning swimming pool and low-maintenance landscaping. The property includes plantation shutters, a washer and dryer, a refrigerator, and a multi-panel sliding glass door that invites abundant natural light. The kitchen boasts elegant quartz countertops and stylish subway tile. The thoughtfully designed great room floor plan separates the master suite from the secondary bedrooms, while the office can easily serve as a fourth bedroom. Conveniently located near an elementary school, restaurants, and shopping!

2284 N 163rd Drive Goodyear, AZ 85395

$599,900
2 Beds
2 Baths
1,898 SqFt
Status Active Under Contract
MLS # 6767806
Property Type Single Family Residence
Price Type --
Beautiful highly upgraded, updated, and expanded Newport Model situated on a private view corner lot on the Tuscany Falls side of the award-winning golf course community of PebbleCreek is waiting for you! This property has been meticulously maintained and will please even the most particular buyer. As of 2024, this property features a New AC and a New H20 Concepts water treatment system. The kitchen has been beautifully updated with 42-inch white shaker cabinets w/soft close drawers and LED under-cabinet lighting, quartz countertops, porcelain subway tile backsplash, & newer stainless steel GE Profile appliances. It also offers a nice-sized walk-in pantry. The dining room has been extended and has a bay window. Not only is this home situated in the perfect place and well-maintained... it also has many designer touches and features. Which includes 8 X 40 wood look porcelain tile, charming wainscoting, beadboard, crown molding, and designer roll-down shades, including remote shades for the great room and the patio door. You'll find designer 2-tone interior paint, tall baseboards, and ceiling fans throughout the home. The primary bedroom has been extended and features a bay window. The primary shower is stunning. It's oversized and custom-designed with beautiful porcelain tile and has a glass barn door. New 36-inch vanities and comfort toilets were also installed in both bathrooms. The den has double doors for privacy. Newer GE washer and gas dryer convey with the home. You'll appreciate the brick pavers in the front and backyard with professional landscape & timed accent lighting. The backyard has a view fence with a pretty view of the common area. You'll also find a cozy gas fireplace, gas BBQ line, and mature citrus trees in the backyard for your future enjoyment. The garage has been extended by 4 feet and has a new insulated garage door and there's room for a golf cart garage on the side of the house! This is a rare opportunity to own a true PebbleCreek dream home at an amazing price so don't wait to see this one because it won't last long! Please see the full list of upgrades and updates in the document section.

1910 E Rainbow Trail Payson, AZ 85541

$599,900
3 Beds
2 Baths
1,772 SqFt
Status Active Under Contract
MLS # 6692516
Property Type Single Family Residence
Price Type --
BRAND NEW - TO BE BUILT Dream Home on the Rim in Payson - surrounded by gorgeous custom homes and less than 7 min from Renowned Golf Club at Chaparral Pines & The Rim Club, less than a mile from Safeway grocery store and convenient shopping, dining, gas & bank. Buyers able to select Cabinet Color, Granite Color, Interior & Exterior Paint and Flooring. Not much around here under $600K so hurry - home can be completed in less than 6 mos- just in time to enjoy for the summer! Photo reflects same floorplan and elevation as what will be built. Additional Photos of this home will be posted as it progresses. Buyer to verify all facts & figures.

4209 E Bonanza Road Gilbert, AZ 85297

$599,900
4 Beds
3 Baths
2,502 SqFt
Status Active Under Contract
MLS # 6753531
Property Type Single Family Residence
Price Type --
This beautiful home in Power Ranch has been meticulously maintained by the original owners and offers 4 bedrooms & 3 full baths in 2502 SqFt. Living areas include formal living/dining and separate family room on the main level and a large upstairs loft. The recently updated eat-in kitchen features maple cabinetry with under-cabinet lighting and crown molding, granite countertops, modern subway tile backsplash, stainless appliances, pantry, and island with breakfast bar. The backyard has an extended covered patio with ceiling fan and easy-care artificial turf for kids and pets to play on. One bedroom and bath are on the main level, perfect for guests! The primary is upstairs and has double door entry, and an en-suite bath with dual sink vanity, separate tub & shower, and walk-in closet. The laundry room is conveniently located upstairs. Other features include an oversized 2 car garage and leased solar panels to provide utility savings! Power Ranch is a resort-style community with a variety of amenities including a clubhouse, two swimming pools, and spa, sport courts (including tennis, pickleball, and bocce), fitness center, and much more!

7655 W Tierra Buena Lane Peoria, AZ 85382

$599,900
4 Beds
2 Baths
2,157 SqFt
Status Active Under Contract
MLS # 6753827
Property Type Single Family Residence
Price Type --
Welcome to your dream home where indoor and outdoor living blend seamlessly! This move-in-ready gem is designed for those who value comfort, style, and the perfect space for entertaining. Step into the open-concept living and dining areas that flow effortlessly into a stunning kitchen featuring granite countertops, stainless steel appliances, white cabinetry, and a stacked stone breakfast bar. Whether you're hosting a dinner party or enjoying a quiet meal, this space is both functional and inviting. The highlight of this home is the incredible backyard oasis. A lagoon-style pool, cozy firepit, manicured lawn, and fully equipped outdoor kitchen set the stage for endless outdoor enjoyment. The large covered patio, makes outdoor lounging and dining a breeze. It's the perfect setup for hosting gatherings or relaxing in style, offering a seamless transition between indoor comfort and outdoor luxury. The primary suite offers a private retreat with a walk-in closet, direct backyard access, and an en suite bath featuring dual sinks, a separate soaking tub, and a shower under a skylight. The additional oversized bedrooms provide ample space for whatever you needguests, hobbies, or a home office. With a 4-car tandem garage featuring built-in storage, a new RV gate, and an 80ft RV driveway with a 30-amp hookup, there's plenty of space for all your toys and adventures. Plus, NO HOA means you have the freedom to enjoy the space however you like. Designed for those who appreciate the art of indoor-outdoor living, this home offers the perfect setting for relaxation, entertainment, and everything in between.

19709 N 66th Avenue Glendale, AZ 85308

$599,900
3 Beds
2 Baths
2,313 SqFt
Status Active Under Contract
MLS # 6767187
Property Type Single Family Residence
Price Type --
Welcome to Highlands at Arrowhead Ranch! This charming 3-bed, 2-bath residence features a 2-car garage, an inviting front porch, and a landscaped yard. Discover a lovely living room with vaulted ceilings, a cool palette, blinds for privacy, and attractive wood-look flooring. Adjacent, you'll find a versatile den ideal for an office. The great room includes a tiled fireplace for cozy evenings with loved ones. The gourmet kitchen comes w/ upgraded quartz counters, abundant cabinetry, a stylish tile backsplash, recessed lighting, SS appliances, a walk-in pantry, and an island with a breakfast bar. The primary bedroom offers direct backyard access, an ensuite w/ dual sinks, and a walk-in closet. Unwind in the backyard, complete with a covered patio and a refreshing pool. Make this gem yours!

31723 N 24th Drive Phoenix, AZ 85085

$599,900
3 Beds
2.5 Baths
2,026 SqFt
Status Active Under Contract
MLS # 6773196
Property Type Single Family Residence
Price Type --
Stunning home on a FABULOUS, UNIQUE private lot, in the popular Gated Community of Sonoran Foothills! Amazing Mountain/Desert Wash Views with no one on the side or in the back! The low maintenance Backyard boasts artificial turf & a covered patio. This beautiful end unit is upgraded just right! The Chef's Kitchen features the ultimate appliance, cabinet & counter package. The gorgeous granite counters, modern cabinets with soft close & roll-out shelving, stainless steel appliances, and oversized island with a breakfast bar are very impressive. This Great Room plan is perfect for entertaining. Upstairs you will find 3 Bedrooms and a Loft. The spacious Primary Bedroom is split with a private balcony showcasing the awesome desert scenery. A large tiled walk-in shower, built-in custom cabinets, raised vanities, quartz counters, and a large walk-in closet complete with this Primary Retreat. Tiled plank floors, textured carpeting, two-tone paint, and modern railings are perfect accents. The R.O. system and water softener are a bonus! Just steps away from the Community Pool, Spa, BBQ, and Dog Park. Close to shopping, dining, entertainment, and I-17. Tour this beautiful home TODAY! 10+

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