How Does New Construction Help with Supply Issues and Affordable Housing?
Given how few pre-existing and resale homes are for sale these days, all this new construction around the Triangle should eventually help with the housing affordability problem — at least in theory, right?
More supply from New Construction to meet the buyer demand should balance the supply and demand issues that have been driving housing prices up for the past 7 or so years. But much of what’s being built this past few years was more high-end luxury housing, including larger homes and luxury apartments and that has not helped affordability for first time home buyers in the Triangle. But that might be changing.
Builders are still facing the same challenges as before the Covid related downshift in New Construction began. A lack of workers, diminished supply of available land, high costs of regulations, supply chain issues affecting materials, as well as potentially tighter financial conditions have all put a damper on New Construction productivity. All of this contributed to slower than normal new construction production and it has made prices soar in the resale market.
The Federal Reserve’s aggressive effort to tamp down growing inflation by raising its baseline interest rates significantly weakened buyer demand late last year and into early 2023. These interest rate hikes sent mortgage rates soaring and compounded a tough situation for buyers already facing high home prices and a lack of available supply. Builders have finally seen the need to build more affordable housing to meet this pint up demand, such as townhomes and more modest single family homes. This incoming supply could also push down rents, which have soared throughout the pandemic era alongside re-sale home prices.
The two founders of adorn REALTY both hold specialty certification in New Construction with a NHCP Real Estate certification and can expertly guide you in the process of custom building, New Construction homes purchases and home ownership. Their vast experience, concentrated training and community connections can help you find a New Construction home of your dreams!
More supply from New Construction to meet the buyer demand should balance the supply and demand issues that have been driving housing prices up for the past 7 or so years. But much of what’s being built this past few years was more high-end luxury housing, including larger homes and luxury apartments and that has not helped affordability for first time home buyers in the Triangle. But that might be changing.
Builders are still facing the same challenges as before the Covid related downshift in New Construction began. A lack of workers, diminished supply of available land, high costs of regulations, supply chain issues affecting materials, as well as potentially tighter financial conditions have all put a damper on New Construction productivity. All of this contributed to slower than normal new construction production and it has made prices soar in the resale market.
The Federal Reserve’s aggressive effort to tamp down growing inflation by raising its baseline interest rates significantly weakened buyer demand late last year and into early 2023. These interest rate hikes sent mortgage rates soaring and compounded a tough situation for buyers already facing high home prices and a lack of available supply. Builders have finally seen the need to build more affordable housing to meet this pint up demand, such as townhomes and more modest single family homes. This incoming supply could also push down rents, which have soared throughout the pandemic era alongside re-sale home prices.
The two founders of adorn REALTY both hold specialty certification in New Construction with a NHCP Real Estate certification and can expertly guide you in the process of custom building, New Construction homes purchases and home ownership. Their vast experience, concentrated training and community connections can help you find a New Construction home of your dreams!
Map of Wake County
New Construction Communities in the Triangle
(alphabetical by area)
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Old Sorrell Estates
Luxury Homes from 1.4m Townes at Westford from the 400s Stillwater Single Family form the 700s Olde Farm Luxury Homes from 1.4m Young farm Single Family form the 700s |
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Daniel Farms
Single Family form the 300s Alder Creek--coming soon in 2024! |
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Corners at Brier Creek
Townhomes Barlow Townhomes starting at 400,000 |
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Destin
Luxury Homes from 1.4m Montvale Luxury Homes form 900k-2m |
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Morgan Ridge
Single Family from the 700s Westfall Single family homes from the 800s Bridgepointe Single family homes inthe 500s |
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Highland Park
Townhomes from the mid 300s Lochwood Three story townhomes form the 300s Forty and Page Townhomes Harlows Point Single Family Tanglewood Townhomes Triple Crown Townhomes and single family |
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Maple Ridge
Single Family from the 400s |
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Woodbridge South
Single Family homes from 400 Broadwell Trace Single Family homes from the low 400s Springwood Townes Townhomes from 400 Brighton Ridge Single Family homes form the high 400s Birchwood Grove Single family homes form the 400s Cotton Farms Single Family luxury homes form the 600s |
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Ford Meadows
Single Family form the 400s Ridgemoor Townhomes and single Family |
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Carolina Springs
Townhomes and Single Family Bridgeberry Single family homes form the high 500s The Mills at Avent Ferry Single Family homes |
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Silver Station- coming soon
Single Family homes |
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Sauls Glen
Single Family form 400s Creedmoor Manor Luxury homes from 1m Piedmont Point Single Family from the 400s Forestville Station- coming soon townhomes Edge of Auburn Townhomes and Single Family 5401 North Townhomes Milburnie Ridge Single Family Trace at Olde Towne |
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The Preserve at Dairy Jones
Single Family form the 500s |
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Riverwalk
Single Family homes from 400 Franklin Townes Townhomes from 300 |
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Devon Square
Townhomes and Single Family homes Elizabeth Springs single family homes starting at 460 Rosedale Townhomes and Single Family Charleston Traditions at Bowling Green Charleston style homes form the mid 400s Radford Glen Single Family form the mid 500s |
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Groves at Deerfield
Single Family Groves at Deerfield Townhomes from the 300s Eagle Trace coming soon Magnolia Townes- COMING SOON townhomes |
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Bakers Farm
Single Family homes from the high 300s The Retreat at Green Haven Single Family homes form the mid 500s The Enclave at Hidden Lake 55+ Single family form the mid 400s Hidden Lake Estates Single family form the 800s |
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Jasper Place
Single Family |
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