Houses: If You Can’t Buy ‘Em, Build ‘Em
Off the Charts: The Visual Says It All
When it comes to houses for sale, “new” options are gaining ground on “used” ones, real estate sales data shows.
The chart below illustrates the percentage of single-family houses on the market that are newly built, according to data from real estate firm Redfin. New construction made up 25.7% of all such homes for sale in the first quarter of 2021, compared with 20.4% in the first quarter of 2020 and 13.3% back in 1999.
Buyers in recent months, frustrated by a lack of existing homes for sale, have been turning to homebuilders to meet their needs, as low mortgage rates have made borrowing money to buy a house an enticing proposition.
“Building homes has become more attractive and profitable during the pandemic due to record-low mortgage rates and red-hot homebuyer demand,” said Redfin lead economist Taylor Marr in a commentary. “At the same time, many homeowners have opted to stay put and refinance or remodel their existing homes instead of selling them, allowing new-construction homes to take up a larger portion of the market.”