The future for entry-level buyers
The demand for entry-level homes is consistent as the market reflects a generational shift in buyers. The John Burns New Home Trends Institute survey reflected that 76% of Gen Z have the goal to own their own home, despite affordability barriers. Builders are able to adapt their focus using creative tactics.
“Entry-level demand is real and resilient, but affordability remains the gatekeeper. Builders who succeed will do so through creative design, financing partnerships, and strategic land planning – not by waiting for lower rates.” said Jack Kelley, Senior Associate in Consulting at John Burns Research and Consulting.
Kelley provided his insight on how builders can adapt to this younger market of entry-level buyers. His pulse on the market understands that young buyers are able to compromise on size when efficient layouts shift price points. He also cited flexible financing as a tool for builders, like mortgage rate and lender partnership. As many entry-level buyers prioritize fitting the monthly payment into their budget, when that number is more manageable they are likely to generate sales. Aligning builders with local policy trends can also help leverage minimal costs and maximize affordability for their clients.
