Builders are Building Smaller Homes

Why Smaller Homes Could Be Your Big Opportunity in Today’s Market

Hi there! If you’re feeling like buying a home is still tough, even though affordability is improving, you’re not alone. But here’s some good news: builders are adapting to the current market by focusing on smaller, more affordable homes. And they’re sweetening the deal with some key incentives that could make all the difference for you as a buyer.

Builders Are Responding to Market Shifts
During the pandemic, many homebuyers were seeking larger spaces for things like home offices, gyms, and virtual schooling. Builders responded by designing and constructing bigger homes to meet that demand. But now that affordability is a major concern, both builders and buyers are shifting their focus to smaller, more budget-friendly options.

In fact, builders are now concentrating on homes with less square footage to help make homeownership more accessible. According to the National Association of Home Builders (NAHB), today’s homebuyers are looking for homes around 2,070 square feet, compared to 2,260 square feet 20 years ago. And these smaller homes often come with smaller price tags, which is great news if you’re looking to buy.

How a Smaller, Newly Built Home Can Work for You
If you're feeling priced out of the market, it may be time to consider a newly built home that offers a bit less space but still meets your needs. The bonus? Many builders are offering enticing incentives like price reductions or mortgage rate buydowns to help with affordability. In fact, recent data from Zonda shows that more than half of builders are offering some type of incentive, and a mortgage rate buydown can lower your monthly payments right out of the gate.

John Burns, CEO of John Burns Research & Consulting, puts it perfectly: “The monthly payment matters more than anything else, and builders have responded with smaller, more efficient homes.” It’s all about making your monthly housing costs more manageable, and these newer, smaller homes can help do just that.

Why New Construction Might Be Right for You
Along with the financial benefits, a newly built home means everything is, well, brand new! You’ll have fewer maintenance needs, and many of these homes come with modern features and energy-efficient upgrades that can save you money in the long run. Plus, let’s be honest, there’s something pretty exciting about being the first person to live in a brand-new home, right?

The Bottom Line
If you’ve been feeling the pinch of today’s real estate market, now might be the perfect time to explore newly built homes. With builders focusing on smaller, more affordable options and offering incentives to help make homeownership within reach, there are plenty of reasons to feel optimistic. As always, I’m here to help you find the right home that fits your needs and budget. Let’s chat about what’s available in Sarasota and see how these market shifts could benefit you!