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Construction of New Homes Is Rising. Here’s Why.
The construction of new homes in the U.S. is hitting levels not seen since 2006.
With construction starts on single-family homes rising at a double-digit rate throughout the spring and building permit applications climbing alongside them, the United States could host as many as 1.75 million new homes by the close of 2021.
So, what’s behind this new housing boom? There are four key factors driving house hunters to new construction:
#1: Limited Supply of Existing Properties
In the Chicago area and in many markets across the country, the number of existing properties on the market sits well below typical norms. In the nine-county metro Chicago area, for example, active home listings are half of what they were before the pandemic struck in March 2020. The slim supply of existing home inventory is fueling bidding wars on properties, pushing homebuyers to make fast decisions, and creating unsettling experiences.
In choosing to build a new home, you can avoid the chaotic resale market, a rushed process, and pricing ambiguity. Gallagher and Henry, for instance, is fully transparent on its pricing and has a defined, streamlined, and time-tested process for bringing your new home to life.
#2: Low Interest Rates
Yes, it’s true that low interest rates apply to an existing property just as well as they do to a new home. But rather than selecting a fixer upper or starter home – and dealing with that home’s inevitable updates, renovations, and repairs – buyers are taking advantage of historically low interest rates to get into their forever home now.
Combined with new construction’s lower maintenance costs and improved energy efficiency, buyers see taking advantage of current low rates to purchase a newly built home today as a savvy long-term financial play as well as one that gets them into their dream home.
After a year marked with inconveniences brought on by the COVID-19 pandemic, house hunters aren’t much interested in additional disruptions and hassle. Many look to their home to be a place of serenity, not strife, and don’t want their home complicating life.
In building a new home, you get new mechanicals, new windows, new appliances as well as a home built in your image. That means no haggling with contractors about renovation projects or repairs and no long days spent hunting for a new oven or refrigerator at retail stores.
With so much out of our control over the last year, even seemingly pre-determined things such as kids being in school, so many people stand eager to regain control. New construction enables just that.
With Gallagher and Henry, you select your lot and your home plan. Then, you can customize the home to your needs and tastes, selecting colors and finishes while also working with the Gallagher and Henry team on any modifications to the existing floor plan. Whether it’s extending a flex room, a finished basement, or adding another full bath to the second floor, you have the ultimate say so on how your home looks on day one.
Join the New Construction Party
The surge in new home construction has not happened by accident. More and more homebuyers are rejecting the resale market and choosing to build a new home because of the clear financial and lifestyle benefits new construction provides.
Gallagher and Henry invites you to build your own home in eight different communities across Chicago’s southwest suburbs. With luxury elements and in-demand features like open-concept floor plans, three-car garages, and flex spaces engrained in its Lifestyle Series home plans and a track record of high-quality construction running across eight different decades, Gallagher and Henry offers an exciting solution to your home search.