Buying a Brand-New Home in 2023

Housing affordability and availability are major concerns across the United States. Here in my hometown of Columbus, Ohio, it is the same. We enjoy a growing population and economy thanks to projects like Intel’s $20 billion dollar investment in a new production facility.

According to a 2022 Building Industry Association of Central Ohio study conducted by Vogt Strategic Insights, we need 14,000 – 19,000 new homes each year. Which is roughly double the current number of new homes built in the region. In a recent interview (1/27/2023), Lawrence Yun, Chief Economist for the National Association of Realtors, builders face two major obstacles. Limited lot availability and a worker shortage. Because of these, and other factors, new homes are more expensive than existing homes.

This means that new homes are generally out of reach for first-time buyers. So, to make room for first-time buyers, an existing home must become available. Existing homeowners are reluctant to sell their existing home for a couple of good reasons. First, they are concerned about interest rates. Why sell their existing home, even if it does not meet there needs or desires if they have to pay a higher interest rate. Second, if they sell, where will they move to? In a recent survey of builder’s websites, I located over 100 new communities in the Columbus metro. The homes start at in the mid-$300’s and topped out as far as your budget can handle. The square-footage of the homes start as low as 1419 and expanded to nearly 6000. There are some advantages to buying new construction. According to Gonzalo Mejia, a Realtor in Jacksonville, Florida, they are:

• The ability to customize, select the floor plan and finishes.
• You get to pick your lot.
• Everything is new.  You have peace-of-mind of not having to deal with things breaking down or needing replaced.
• The price is only one factor – the sales price may be higher, but energy efficiency means lower energy bills, lower maintenance costs and a long time before you must replace anything.
• Newer technology – higher internet speeds
• Builders work with lenders or have in-house financing.  This may mean a lower interest rate.
  • The builder may pay down points.Lock-in interest rates to accommodate longer build time.
  • Available inventory.  Even in this tight market, builders have inventory homes that are ready to move into as soon as 60 days.

The choices can be overwhelming.  This is why should you work with a Realtor when looking at new construction. A Realtor that specializes in new construction is familiar with the communities and promotions each builder offers and can help you find a community in the area you want to live in, with the features you want and at a price that meets your budget.

If you are considering selling your home or looking for your next, I can help! Click here for a quick guide to home staging success. To request a free complete guide to selling your home or a competitive market analysis click here. If you are considering selling your home or looking for your next, I can help!

To explore available homes in the Columbus metro, click here.