Availability, affordability sidelines potential homebuyers

Orlando — A lack of affordable, buildable lots and the scarcity of labor affected home production in 2017. 

While starts increased by 9% compared to 2016, the characteristics of these new homes stayed largely the same, according to survey results from the National Association of Home Builders released at the International Builders' Show.

The average home size, at 2,622 sq. ft. in 2016, was essentially unchanged in 2017, averaging 2,627 sq. ft.



But housing availability and affordability remain a serious issue, and it's reflected in these findings, said Rose Quint, assistant VP of survey research for NAHB. 



About 65% of those surveyed don't believe it's going to get any easier in 2018 while 79% of prospective buyers can only afford half the homes in their markets, Quint said. 

“These potential buyers see a problem with housing availability," Quint said. "They know it's a tough nut to crack, but they are not deterred. They are still planning to buy a house in the next 12 months." 



Homeowners are also staying in their homes longer than they used to — about 12 to 13 years, on average — and they are anxious to make changes, the NAHB said. 

Mainstream buyers are much more likely to tackle do-it-yourself projects and make compromises, such as choosing cost over quality, to get results: brightly painted kitchen cabinets and big-box lighting solutions rather than custom installations. They place a premium on energy-efficiency improvements, likely because they live in older homes with outdated heating systems.



The "luxury" owner is looking at high-end outdoor fireplaces and furniture, a bathroom renovation that includes a spa shower or expansive, free-standing bathtub and a kitchen with all the bells and whistles, like built-in wine coolers and warming ovens.



Meanwhile, there is a potential market for "tiny houses." The NAHB survey found that 53% of respondents might consider purchasing a home of 600 sq. ft. or less in size — at some point in their lifetimes. More GenXers and millennials are open to the idea than baby boomers and seniors, NAHB said.