Wednesday, September 25, 2024 / by Richard Eimers
FLORIDA LEADS THE WAY IN AFFORDABLE NEW HOME CONSTRUCTION
Florida is emerging as a national leader in affordable new home construction, particularly with smaller, lower-priced homes helping to ease the state's housing shortage. According to Realtor.com’s New Construction Insights report, Florida ranks among the top 10 states in terms of housing volume, affordability, and potential for future growth. In a unique trend, new builds in Florida are often priced lower per square foot than existing homes—a rarity in today’s competitive housing market.
Richard Eimers Broker Owner September 25, 2024
Richard Eimers Broker Owner September 25, 2024Key Criteria for Florida’s Ranking
Realtor.com assessed states using three key metrics:
Share of Listings That Are New Builds: This tracks the contribution of new construction to the overall housing market.
Price Per Square Foot Premium on New Builds: Florida ranks low in this category, meaning new homes are more affordable compared to existing ones.
Permits for New Single-Family Homes Per Capita: This indicates Florida’s growth potential by examining the number of building permits issued.
Florida's strong performance across these metrics reflects the state's role in tackling the national housing shortage.
Why Builders Are Prioritizing Smaller, Affordable Homes
Builders across the U.S. are shifting their focus toward smaller, affordable homes to address the rising cost of existing properties. This is especially crucial in Florida, where housing demand has outpaced supply since the Great Recession, leaving a gap of over 7 million single-family homes. By constructing affordable homes, Florida is not only helping to meet the demand but also providing more opportunities for first-time buyers and those looking to downsize.
