Build a Home on a Lot with Family and Friends
Across the country, people are opting to prioritize space and minimize expenses by building their homes together as neighbors.
The COVID-19 pandemic drastically impacted the U.S. and global economies, and as a result, people across the country have been forced to reevaluate their lifestyles. As income and employment became less and less certain and people spent more and more time at home, priorities have shifted dramatically—and the impacts were felt across industries.
Real estate is no exception. More than 2.5 million young adults have moved back in with their parents to cut costs, roughly one-fifth of Americans have relocated since early 2020, and nearly half of people everywhere have either moved or know someone who did.
And while some people are simply moving into family homes or bunking with friends in cramped apartments, even more are building their dream homes from the ground up. According to the U.S. Department of Commerce, the completion of newly built homes in September was over 15%—above August’s estimate—and 25.8% greater than this time last year. Realtor Theresa Turchin of Beverly-Hanks concurs, "I have multiple clients right now looking for a few acres to a hundred acres, for privacy plus the idea of building multi-generational family compounds. My clients are all from out of state and see North Carolina as a sanctuary and can’t wait to share it with their friends and family."
Why are people choosing to build instead of buy?
Sharing Spaces Cuts Costs
According to the Bureau of Labor and Statistics, over 18 million people were unemployed in June—and 11.4 million of those lost jobs were caused by the shockwaves from pandemic shutdowns. As a result, people are trying to cut their monthly expenses in the face of financial uncertainty, and for many, housing is their primary fixed expense.
To save, owning instead of renting is the smartest move in the long-run. The average monthly rent in the U.S. is $1,468, while the average mortgage payment is only $1,275. Homes are also historically stable investments, meaning that the equity you pay into the home will likely appreciate in the long-run—making it a smart and savvy investment, even during a pandemic.
Maintenance on New Homes is Minimal
Besides just being able to save money in the long-run, building a home also saves you in the short term. Of those who own an existing home, about a quarter spend $100 or more on upkeep and monthly maintenance. When comparing that with new homeowners—73% of whom spend less than $25 per month—the cost savings become apparent.
Besides maintenance, homeowners with a newly constructed home also save on energy expenses like gas, electricity, water, along with home insurance costs. All in all, these operational expenses add up to significant savings that help offset the costs of the up-front build and make a new home a smart investment.
Option to Customize for Unique Living Arrangements
As living arrangements expand outside of the nuclear family model, existing homes may not be the best suited for their modern families. Instead of retrofitting into a home built for a different lifestyle, building a new home allows people to create a custom floorplan. That means that, especially with the increase in time spent at home, that people can allocate enough working space, enough outdoor space, and enough space to live and socialize with your roommates or family members.
If you’re interested in building a new home, start with Atmos to customize the entire homebuilding process—all in one place.
