How Building More Can Raise Home Values
Scarcity isn’t the only way to drive an area’s home prices upward.
Throughout much of the US right now, homes are selling for tens of thousands of dollars above listing prices and home values are appreciating at record rates. This spike is due in part to a huge imbalance between supply and demand — with millennials entering the market and lifestyle perspectives shifting, there are far fewer homes for sale than there are hopeful buyers. So, does adding new homes to the pool by building more mean that home values in that area will drop?
Not necessarily. Of course, it depends on exactly what’s being built, but in many cases, building more homes can actually raise home values for the whole neighborhood.
High Comps
Part of the home value calculation process comes down to using sale prices of comparable homes in the area to place a value on the home being appraised. So when the overall home values in a neighborhood rise, the value of the existing homes within it do too.
If there’s a new build down the street from a house of a similar size, its value will be taken into consideration when the time comes to refinance or sell the existing home. High-quality new construction will help everyone on the block!
Curb Appeal
When someone comes to look at a home in any given neighborhood, they’re looking to get a feel for the lifestyles and qualities of that neighborhood overall. It’s not just about the house itself, but also about the community they’d become a part of if they moved in. The more homes look cared-for, manicured, and updated, the better the first impression will be for the community as a whole. First impressions aren’t everything, but in shopping for homes, they do say a lot.
Nearby Amenities
Often, new construction and therefore a slightly higher concentration of homes in a given area will lead to more community amenities and attractions coming about in and around the neighborhood. Those who live in neighborhoods that were once more sparsely populated will likely see more convenience in their lives as more homes are built nearby.
It’s all about balance; it’s nice to live far enough away from others that you can’t hear your neighbors on a phone call, but it’s also nice to have a grocery store and a few restaurants within a short drive!
Custom Flair
In some neighborhoods, whether they’re well-established or brand new, many of the homes look very similar to one another. And while the building in bulk approach may have its uses, most people want to live somewhere where they can express their individuality. Building custom homes in established neighborhoods can help raise home values by adding a dash of personality and possibility to the landscape.
Scoping out a neighborhood? Give it a boost when you build your own custom home there. With Atmos, the home building process has never been easier. Get started today.
