How the market has shifted in just a few years

[Devin James]

In 2021, we saw buyers upgrading to larger homes, taking advantage of 3% interest rates to afford an extra 300+ square feet.

Today, smaller homes are selling much faster as higher rates make additional square footage less affordable.

While rates are historically average, I don’t see them dropping significantly. Combine that with America’s housing shortage, and the solution becomes clear:

We need to build more homes that align with what buyers can afford. That is smaller units built with higher density to make the numbers work for both buyers and builders.

Adapting to these challenges isn’t easy, but it’s necessary to keep up with the market.

What are your thoughts on how builders and developers can address affordability and supply issues.

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Devin James:

In 2021, we saw buyers upgrading to larger homes, taking advantage of 3% interest rates to afford an extra 300+ square feet.

Today, smaller homes are selling much faster as higher rates make additional square footage less affordable.

While rates are historically average, I don’t see them dropping significantly. Combine that with America’s housing shortage, and the solution becomes clear:

We need to build more homes that align with what buyers can afford. That is smaller units built with higher density to make the numbers work for both buyers and builders.

Adapting to these challenges isn’t easy, but it’s necessary to keep up with the market.

What are your thoughts on how builders and developers can address affordability and supply issues.

 I believe the housing shortage is a farce - there is no housing shortage - there is an affordability issue and an inventory issue - but there is plenty of housing. The same was being said 15 years ago and we went from this huge shortage to being able to pick almost any home you wanted for 4 years and we were not building anything.

I agree.. just look at any large mid west or rust belt metro.. there is a ton of houses avaliable the question though will folks buy in certain neighborhoods where inventory is readily avaliable you can buy existing in many of these markets for far less than new builds..

so to me its really a neighborhood issue  a school issue a crime issue etc etc..