Thursday, September 30, 2010

New Jersey New Home Buyers Want Less Cost, Less Square Footage

According to research from economists at the National Association of Home Builders (NAHB), a growing segment of the housing market, first-time home buyers are contributing to an increase in demand for smaller and less expensive new homes.  A recent study conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, "Characteristics of New and First-Time Home Buyers," found that 41% of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.

"Builders are increasingly gearing their homes to the needs of first-time buyers, and we expect the trend to continue in the period ahead as the economy begins generating more jobs and more people in their 20s form households," said Bob Jones, chairman of NAHB.  He continued, "New homes are a better match for the needs of the population in general.  Compared to what is typically available in the existing housing stock, they are more energy-efficient, easier to maintain and have designs better suited to today's lifestyles."  First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up.

First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up.  46% of first-timers bought homes smaller than 1,500 SF.

New Jersey builders are adjusting to these new market trends, using energy-efficient materials and designing plans with less square footage but more flexibility.  Call or email me for some ideas on builders here in Mercer County, and available new home developments.

Joe Giancarli, SA
Real Estate Advisor

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