2024 New Construction Forecast

Last year, I wondered if new construction would bring us out of the inventory crisis. The answer was then, and is now, NO.

But, what should we expect for new construction in 2024? Are the builders still consistent with their new builds, or are interest rate concerns causing them to slow down?

I INTERVIEWED 5 PLAYERS IN OUR MARKET TO FIND OUT THEIR
2024 OUTLOOK, AND HERE WERE THEIR RESPONSES:

1. Are you bullish or bearish on new construction for 2024?
Consensus: 4 bullish, 1 neutral
“We are very excited about 2024 and think it is going to be an amazing year. We have a lot of new communities and are starting many new inventory homes for those who need something sooner rather than later.”
– Cory Brannock, Isenhour Homes

2. Do you anticipate a large jump in sales if interest rates fall below 6%?
“I think it will definitely help. People will continue to use buydowns to further lower their rate.”
– Ken Capron, Shugart Mungo Homes

3. What is the #1 feature that buyers will be looking for in 2024?
“We see buyers trending more to a contemporary feel to their homes…floating shelves, linear fireplaces, very simple trim work, etc. The open living concept and outdoor spaces continue to be big selling points.”
– David Hickman, Westphalia Construction
“Buyers are still looking for open-concept living, and move-down buyers and younger buyers are looking for high-quality smaller homes.”
– Aaron Lange of Arden Homes
“Open-concept floor plans and home offices are must-haves!”
– Cory Brannock, Isenhour Homes

4. What is a “hot project” you would like to share?
Arden Homes: Meadowfield Terrace
Mitchco: Custom homes in Brookberry Farm
Westphalia: The Cottages at Brookberry Farm
Shugart/Mungo: Many new developments across the Triad
Isenhour Homes: Crescent Hill, Ivy Brook (N. Davidson), and Old Mill (Clemmons)

5. Why should a buyer invest in new construction vs buying a resale home? “For buyers new construction is a great option for many reasons. The wonderful benefit of new construction is the peace of mind you get knowing you won’t have any major home repairs to worry about for many years. Also, your new construction home is up to date and you won’t need to spend an extensive amount of money updating your home. No leaking roofs, no H-Vac systems or old water heaters to replace, no foundation problems or rotten wood to worry about. You can rest assured your home has the most up-to-date energy-efficient items such as windows, insulation, H-Vac system, and appliances that should equate to big savings in energy bills. If you get in on the front end you can customize your home so that the floor plan is perfect for your needs and you get to make all of your own design selections. All of these are just a few of the many reasons new construction offers many advantages over buying an existing home.”
– Geoff Mitchell, Mitchco
“New construction will continue to offer the best homes for the money with built-in appreciation as prices rise as houses sell.”
– Ken Capron, Shugart Mungo Homes

MY TAKE
I am very excited about so many new projects! I have recent sales with Shugart in Clouds Harbor and Hanes Lake and with Isenhour Homes in Crescent Hill. Mitchco is helping my clients with an exciting renovation, and carrying some traditional ideas into modern spaces in their new construction in Brookberry Farm. Westphalia’s new concept in the Cottages at Brookberry Farm should attract a different buyer and will be a breath of fresh air for Brookberry. Arden’s twin-homes have been hot sellers, and that should continue in Meadowfield Terrace. Watch for continued growth in the North Davidson area!