Consumers turn to new home construction

With inventory at historic lows, homebuyers are looking to builders
Limited inventory means home buyers are increasingly looking at new home construction.

Every year, the home building industry has an annual kickoff event where builders, trades, vendors, suppliers and industry professionals gather in an effort to learn the latest in technology, products and design trends. The International Builder Show is an opportunity for those individuals in the construction industry to gather, network and learn about the latest trends.

In 2018, design became a large part of the discussion. Alexandra Isham, project manager for National Association of Home Builders’ design team, covered the topic at length in a session dedicated to residential design during this year’s International Builder Show.

[Related: Real estate agents are an untapped referral stream for builders]

With inventory levels remaining at historic lows, buyers are turning to new construction homes at a higher rate than normal. Historically, new construction has been around 10% of the overall residential sell-through, but we have seen a larger percentage of sales tied to new home construction in the last 12 to 24 months.

In addition to low inventory, many individuals have relocated to Colorado to be closer to their families and we have a mixture of generations living within our communities. Colorado’s Front Range offers many different lifestyle environments based on ones wants, needs and desires, and new home construction allows homebuyers to meet these specific needs.

In Colorado, the overall trend feels blurry. With a mix of traditional, transitional and contemporary designs, buyers are seeking specific features and functionality. However, one constant remains—buyers are searching for homes with clean, simple and organized spaces with ample storage for recreational lifestyle equipment.

Technology is playing a larger role in today’s modern homes. Not only can a buyer visualize his or her new home’s interior and exterior features and benefits electronically, the advancement of smart home features have made access and home management easier than ever.

Buyers still prefer open floors plans. However, they also want defined spaces. An example of these types of spaces include the living room, dining room, kitchen and flex spaces.

In Colorado, we are fortunate to experience close to 330 days of sunshine along with an outdoor lifestyle. The transition and fluidity of one’s indoor and outdoor space has created some amazing opportunities for homeowners to blend one’s indoor and outdoor lifestyle. Outdoor kitchens, sitting spaces, professional landscaping and the growth of pools and spas can enhance one’s property and quality of life.

As we transition from the warm summer into the early fall, local Home Builders Association chapters are presenting their Annual Parade of Homes Tours. The Parade of Homes Tour is an incredible opportunity for those looking to step up or step down their living space. Further, the Parade of Homes offers current homeowners the opportunity to get inspired to prepare their home for sale or just enhance their current property.

[Related: New report identifies healthiest housing markets in Colorado]

Michael Beninati is managing partner and owner of Windermere Metro Denver Real Estate. Windermere’s Builder Solutions program provides professional marketing, sales and operational support to builders and developers through all stages of new home sales. He can be reached at [email protected]

Michael Beninati

Michael Beninati is managing partner and owner of Windermere Metro Denver Real Estate. Windermere’s Builder Solutions program provides professional marketing, sales and operational support to builders and developers through all stages of new home sales. He can be reached at [email protected]

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