Why People are Buying New Construction in 2023
The housing market is constantly changing — and so are people’s preferences for what constitutes the “home of their dreams.” What’s on your must-have list? Is it a spacious kitchen with ample storage? What about a neighborhood near family and friends? Are you most interested in modern technology features? We looked at the latest trends (according to Zillow) in new construction to find out what home features many people are falling in love with in 2023.
Most homebuyers looking at purchasing a new construction home are enticed by the endless customization opportunities that come with building a home from scratch. In fact, this desire has increased in 2022, with 35% of new construction buyers stating that they intended from the start of their search to buy a home they could customize during construction. This is up from 25% in 2021.
While 44% of buyers planned to buy a completed home, 21% sought out a home that was already under construction and that they could customize. This growing enthusiasm for customization is a major trend among new construction buyers this year.
“In 2022, new construction buyers were really attracted to the opportunity to customize their homes throughout the construction process, rather than looking for a completed home to move into right away, which was more common in 2021,” said Jeff Tucker, senior economist with Zillow.
If you’re intrigued by customization, be sure to ask about the possibilities during your initial conversations with builders.
Location, location, location
Your neighborhood makes a huge impact on your way of life — especially since remote work has people spending more time at home. Additionally, many people are looking to be closer to family and friends.
Over the last three years, people are more and more interested in the appeal of older developments but still want the customization that comes with a new construction home. An increasing number of new construction buyers are opting to purchase homes in existing communities rather than in all-new communities or subdivisions. In 2022, only 67% of buyers chose the latter option, a decrease from 70% in 2021 and 77% in 2020.
If you’ve fallen in love with a certain neighborhood, check to see if there are open lots or vacant homes available for purchase. Many communities have a sales center with knowledgeable staff that can walk you through all of the options.
Community amenities are something to keep in mind. The importance of community has significantly increased among new construction buyers this year, with 53% of them prioritizing it, making a 15% rise from 2019. Shared amenities like gyms, clubhouses, walking trails, etc. have become increasingly popular since the pandemic.
Minnesota builds some of the most energy-efficient homes in the country. Many new construction homes have a renewed focus on energy efficiency and reducing long-term costs. Energy-efficient homes not only save money but may also increase property values. This may explain why 77% of new construction buyers deem it extremely important.
When the rest of our life revolves around technology, it only makes sense that smart homes and interconnected tech that offers control over lighting, locks, heating, and security are increasingly popular.
In 2022, 61% of new construction buyers rated smart home capabilities as highly important, compared to only 29% of existing-home buyers who considered it critical to their move. Over the past few years, the importance of smart home capabilities in new construction has been rising steadily, from 34% in 2019 to 45% in 2020 and 58% in 2021.
See the full Zillow report here.