Are new home construction builders essential?
At Marketplace Homes, we know the answer is a resounding yes.
The extreme housing shortage of late 2021 and early 2022 told us that new home construction builders are more essential than ever. In fact, it’s so important that during the pandemic, the Department of Homeland Security (DHS) designated residential construction an “essential infrastructure business” backed by government support.
A low inventory of homes made any listed home fly off the market, even sight unseen, with multiple offers over the listing price. Even more surprising, the house didn’t have to be in good condition.
New home builders are the only cure to a housing market strained for new single-family homes. It’s what’s desperately needed to keep equilibrium in real estate. What are the other reasons why new construction home builders are so essential?
Why New Construction Home Builders Are Essential
When buyers look for a dream home, they often picture a new construction custom home. Later, these homes become part of the existing inventory as resale homes. Without new homes, the population would grow as the selection of existing new houses dwindles. New construction builders are essential businesses that keep the cycle of life going as we know it.
According to the national association of home builders (NAHB), construction projects are an integral part of our nation’s well-being and economy. By providing valuable employment and housing throughout the world, new housing meets the basic needs of every person on this planet. How’s that for being essential?
1. New Construction Keeps the Housing Market Going
Without builders establishing new construction homes around the nation, there would not be enough homes to list on the market. In fact, we are still amid a historic housing shortage, and the prospect of a slowdown can mean even more potential homeowners to miss out. Currently, Freddie Mac reports that we need 4 million more homes to meet consumer demand.
2. Buyers Can Get a Premium Experience
Without new construction homes, homebuyers would not have the option to get a “sure thing” and would have to bid against multiple buyers in a hot market. Even in buyer’s markets, there can be some uncertainty about getting one’s offer accepted, which can be stressful. New homes come with zero competition and allows the buyer to have a concierge real estate experience, allowing them to take place in major decisions — from the initial blueprint to the final walk-through.
3. New Homes Meet Modern Building Codes
New construction homes also supply homes that are up to modern building codes. Imagine if we were still stuck with many old homes that needed rehab by removing asbestos siding and lead paint. Having up-to-date homes makes the move-in process simple, with fewer inspections and disclosures. They are also safer, more energy-efficient, and healthier since they are built to resist mold and drainage issues.
4. New Homes Help Grow the Economy
As lifestyles change and industries evolve, building new homes in growing areas allows society to evolve according to the times. For instance, suburbs can develop around major metropolitan areas, providing employees with more homes with the upgrades modern life demands.
More homes also provide more income for energy providers, give more business to material manufacturers, and keep valuable skilled laborers active. This allows towns and cities to grow, stimulating local economies, boosting school funding, increasing tax revenue, and overall improving the functionality of an area through more housing options.
5. It Provides More Job Opportunities
Not only do more new homes benefit growing areas, but they also provide valuable employment to tradespeople like construction workers, electricians, general contractors, home inspectors, and any other skilled laborer involved in new construction homes.
New real estate also supplements the income of realtors, lenders, and appraisers through commissions and other fees. Hourly workers especially benefit from new home construction. Steady work promises regular wages.
6. Homebuyers Get More Selection
With new home builders, homebuyers would have the freedom to select a construction site to build a custom home, and they would be able to work with a realtor to find a builder with custom floor plans and material options. They would only have what is already built, and that inventory would get older and need more remodels every year.
Though the construction process requires a lot of commitment and effort, it is vital to stay the course to keep the real estate market as healthy as possible — and to keep home prices as stable as possible.
7. It Keeps Housing Prices as Stable as Possible
Though new home construction is known for being more expensive than existing homes, they actually help regulate real estate prices in the long game. The housing shortage after the pandemic created bidding wars and made it standard to over-offer. The scarcity of available homes caused a surge in market demand, making it possible for sellers to pick the highest bidder without even making repairs.
However, imagine how much worse this situation would be if builders stopped creating new neighborhoods for several years. Competition would have been fiercer, with inflation and rising interest rates becoming the least of our worries. A steady pipeline of new homes is our best bet for maintaining affordable housing.
Are New Construction Home Builders Essential?
If you think that meeting the growing population’s basic need for housing and our nation’s economic well-being is important, then yes, new construction home builders are as essential as essential gets. Marketplace Homes stands by this conviction, and that’s why we specialize in new home construction real estate. For more information, contact us today!