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.