Why More People are Building New in 2022

According to Zillow's 2021 Consumer Housing Trends Report, seventy percent of new home shoppers are considering building new. Up from 62% in 2020, this number continues to rise. Why?

Simply said, more people than ever are looking to own their home, but fewer homes are available on the market. The decrease in for-sale existing homes has led buyers to experience anxiety and pressure, and to participate in costly bidding wars for homes that may not even fit their preferences. That’s where new home construction homes in. Families building new homes enjoy the relaxed nature of the search – a welcome departure from the lightning-fast pace of the existing homes market. In new construction, you can take your time to shop around, pick out your perfect location and floor plan, hand-select details like backsplash, flooring and fixtures, and rest assured that the home you are having built will be yours. If you need to sell your current home before you buy, the market should give you confidence that your home will sell in time to close on your new construction home.

Easy decision, right? But this hot market hasn’t been a total cake walk for new construction, either. Rises in the cost of materials like lumber, iron and steel, and supply bottlenecks for things such as appliances, windows, and even truss connectors have had builders struggling to get the materials they need in time to meet projected timelines, and have forced them to raise prices. Whether your home will be completed in the timeline you expect is completely dependent on your builder’s ability to get the materials (and the labor) they need.

But people still need homes, and builders like Capital Homes are working hard to meet the demand. 

According to the Report, in 2022, “46 million people from 26-35 are entering peak years for household formation and home buying - the largest number on record for that age range. Meanwhile, the supply of existing homes continues to fall far short of demand.”

With the continued shortage of existing homes, builders will continue work to meet market demands. At Capital Homes, we will continue to build on-trend homes in desirable communities where homeowners and families can live, work and play. We have exciting new communities in the works that we know you’ll love – contact us for a sneak peek of our new communities in the works.