by Brandon M. Scott
At this point, becoming a homeowner is tough, not because you can’t buy but because there are more obstacles than ever before to overcome. Yet, the journey of homeownership is a significant milestone, one that many have achieved even in a tough market. For first-time homebuyers, the rising cost of homes can feel like an uphill battle. Every year the amount you need for a down payment and closing costs inches higher. If the line keeps moving, where is the opportunity, especially in this market, for a buyer to buy a home. There’s a silver lining on the horizon. Builders are now shifting their focus towards constructing affordably priced starter homes, and this could be the game-changer many have been waiting for. However, the trade-off that’s needed will be where the rubber meets the road.
The Shift in the Housing Market
In recent years, the real estate market has seen a surge in luxury homes and high-end properties. While these homes cater to a specific audience, they often leave first-time buyers with limited options. Recognizing this gap, builders are now prioritizing the construction of starter homes that are both affordable and high-quality.
Why This Matters
For many, owning a home is not just about having a roof over their heads; it’s about building equity, ensuring financial security, and having a place to call their own. Prior to Covid-19, new homes priced around $300,000 and, true to supply and demand economics, the cost of lumber, time to ship, shipping costs and everything in-between rose, creating a new threshold for pricing. This principle is also being reflected in the present housing market with pre-existing home prices. As builders’ endeavor to build more affordable starter homes, first-time buyers can begin to step into the world of homeownership without breaking the bank.
What to Expect
These new starter homes are designed with the modern homeowner in mind. They are compact, energy-efficient, and equipped with the latest amenities. This also means they’re a blank canvas for every first-time home buyer. Moreover, their strategic locations ensure that residents have easy access to essential services, public transport, and recreational areas.
In the Realtor.com article above, builders are justifying the smaller size for starter homes to them costing less and taking less time to build. This, also, means they’ll sit on smaller lots of land. One recent example of this new construction style is in Washington, DC, Crawford Place, Inclusionary Zoned properties, on East Capital Street and 49th NE. In Maryland, the Village of Towne Square in Suitland, MD hosts several types of affordable starter townhomes, also. In fact, throughout Maryland both luxury and affordable starter homes are being built. Before our very eyes, entire communities are being created, establishing new opportunities for future first-time buyers.
The shift towards building affordable starter homes is a testament to the industry’s commitment to making homeownership accessible to all. For first-time homebuyers, this is an opportunity to turn their dreams into reality. So, if you’ve been on the fence about buying a home, now might be the perfect time to take the plunge.
When it comes time for you to purchase a home, would you consider buying new construction? Let me know, we’d love to hear from you. Find me on social @BScottRealtor .
Brandon Scott is a licensed real estate agent in Washington, DC, Maryland and Virginia. His license hangs with Keller Williams Capital Properties in DC. He’s been involved in the mortgage finance industry for the last 22 years in various fields. You can reach him by email at [email protected]. Subscribe to his YouTube Channel at RealTeaDMV