new construction homes sparks nv

Across the nation, home building projects are increasing, and permits are being put in to expand communities. The same is happening in Northern Nevada, but the COVID-19 pandemic has put a strain on the supply chain, pushed back deadlines, increased costs, and made new home builds a lengthier and costlier process.

Reno home builders have received various letters alerting them to price increases on the materials they need to complete a project, price increases on labor and truck rental fees, and extended timelines to receive materials.

The pandemic accelerated the housing demand in Reno. In part due to Reno’s growing economy and ability to bounce back during hard times, the increase in millennials starting families and joining the home search, and the rise of remote working positions allowing people to live in cheaper cities while working for companies with headquarters in more costly states.

The need for new homes is only increasing, and the supply of homes on the market is at a standstill. Freddie Mac released an estimate at the end of 2020 that said the U.S. housing market was short 3.8 million single-family homes, roughly 50 years behind in supply levels needed to meet the long-term demand.

Unfortunately, builders are facing hardships to not only obtain the supplies they need but to find the workers they need to complete their jobs. Construction costs have increased roughly 20% to 25% in the last year and a half, and it’s not just lumber that builders are having a hard time getting their hands on. It’s vinyl, garage doors, concrete, appliances, and more.

While it is a challenging time for home builders, new developments are still in the works to meet the estimated population increase of 100,000 residents coming to the Reno-Sparks area in the next decade. This projection comes from the Northern Nevada Economic Planning Indicators Committee. There’s still a big push for new homes in the Reno area, and the Reno real estate market is expected to remain strong for the foreseeable future.

If you need more information on what this means for the Reno real estate market, or if you need to buy or sell a home in the current market, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

2020 and 2021 brought changes that nobody was prepared for. As our homes became the epicenter of our lives 24-7, it highlighted areas of our homes that people wished to change. It even had some saving every penny to buy a new construction home, and that housing boom brought some challenges, changes, and new trends. Let’s take a look at how building a home has changed in 2021.

Buying New is More Popular Than Ever

Housing demand has increased far greater than the supply of homes on the market for the last year. The lack of options has made more buyers consider new-construction homes where they may have the opportunity to help decide fixtures, styles, and even amenities the home has to fit their lifestyle.

Prices Have Increased

Material shortages and shipping delays are still occurring, meaning that the cost to build a home is taking longer and comes with a higher price tag. The National Association of Home Builders reports that more than 90% of builders are reporting shortages of essential elements like appliances, framing lumber, and oriented strand board (OSB). They also report that the median sale price for a new home has risen 18% over the past year.

Wellness is a Must-Have

Homebuyers are looking for items in a home that will support their well-being. Everything from energy-efficient features to low-VOC paint is being considered.

Flex Those Spaces

This year has forced everyone to be more flexible, and it’s important to homebuyers that a home is flexible as well. Rooms that could be used as an office, home gym, media room, etc., are moving from a want to a need on home buyers’ shopping lists.

Suburbs > City

The idea of having more space to spread out and enjoy green areas is attractive. Many are looking to leave apartments, condos, and townhomes for a house with a little land. Outdoor spaces are another must-have for many current homebuyers, so new home builds are looking to meet that demand by creating outdoor living spaces or entertainment areas in the backyard.

Privacy Please

With everyone staying at home for longer periods of time, the need for privacy has skyrocketed, and homebuyers are moving away from the open floorplan layout for a more formal layout. The added walls help block out sound and add more privacy to the dedicated areas of your home.

New construction has run into some challenges in the last year, but there are still some beautiful new homes hitting the market. If you’re curious about the latest home trends, the changes to the real estate market, or what homes are on the market, contact the David Morris Group. We’re happy to help you begin your home search. Give us a call at (775) 828-3292.

Posts

New Home Builds – Increased Costs and Longer Timelines

2021 New Home Build Trends and Changes