New analysis of new home infill communities finds that when a housing market is hot, these new detached homes can bring in a 25 percent premium.
In colder markets with limited pricing power and slower sales, the new home premium can be up to 30 percent below normal for detached homes. Writes John Burns Real Estate consultant Pete Reeb, market timing can make a major difference in new home premiums, but community amenities, the age of the housing stock, and types of parking are also major factors in new home premiums.
Builders working on their grand opening prices today or looking at future deals need to pay close attention to today’s market strength. In a hot market, builders can push the new home premium higher than usual. In a cold market, the premium will be less than usual. For the strength of your market, and particularly your submarket, please contact one of our consultants. We work with builders and investors to help them make well-informed decisions regarding the pricing potential of new home projects.
Advertisement
Related Stories
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
Sustainability
Which Green Building Practices Are Home Builders Using Most?
A recent report reveals which green-building practices are most popular among single-family home builders and remodelers
