top of page

Blog

A New Way to Find Affordable Housing: Small New Home Communities

grace264

With current mortgage rates and home prices, it’s true that finding affordable housing has become a challenge. If you're worried about how to buy a home in this situation, there is a cost-effective option if you don’t need a large space: small new home communities.


Small Homes Are Gaining Popularity

Typically, small homes are priced more affordably, which has drawn buyers' attention to homes with smaller square footage, and builders are focusing on this demand. According to U.S. News, "With high home prices and mortgage rates putting pressure on many people's budgets, builders have started shifting towards smaller spaces, which can save buyers money."

According to IRS data, there has been an increase in the construction of small, single-family homes over the past few years (see graph below):


Graph: The average size dropped from 2,309 square feet in Q3 of 2022 to 2,171 square feet in Q3 of 2024, a decrease of 138 square feet.
Graph: The average size dropped from 2,309 square feet in Q3 of 2022 to 2,171 square feet in Q3 of 2024, a decrease of 138 square feet.

In the end, builders want to build homes they know will sell, and what buyers are looking for now are affordable options that address today’s housing cost challenges. As Multi-Housing News reports, "The trend toward smaller homes is clear. These homes cost less to build, are more accessible to many middle-class families, and meet modern living preferences."


Benefits of New Homes

If you're struggling to find a home within your budget, it’s worth exploring small new homes. Plus, new homes require less maintenance since everything is brand new, and they come with the latest features. For example, energy-efficient appliances and HVAC systems help reduce repair costs and monthly utility bills, which is a benefit for everyone.


Conclusion

Today, builders are focusing on affordable small homes, which offers more opportunities for those seeking budget-friendly housing. If you're planning to buy a home soon, connect with a local real estate agent to explore what’s available in the market and move closer to achieving your homeownership goals.



2 views0 comments

Comments


bottom of page