A report by the real estate website Zillow found 17% of prospective home buyers are willing to pay the 20% premium for a brand-new home compared to a resale property. But willing and able are different sides of the coin. The median (half lower, half higher) sales price of new houses sold in February 2018 was $326,800 (U.S. Census Bureau), requiring an $85,000+ annual household income to qualify for such a home’s 30-year mortgage with 10% down at a 4.5% interest rate.
Rising land and construction costs have forced many builders to shy away from the lower end of the market. After all, certain fixed costs such as regulatory and permits vary little, if at all, based on a home’s size, constituting a much higher percentage of a less expensive home’s selling price. Yet the limited supply of affordable homes (partly due to investors having gobbled up tens of thousands of lower priced homes during the recession for rentals) can mean wonderful opportunities for builders offering attractively-priced new homes.
Design Basics’ Kuebler plan (#31007) is a charming three-bedroom, two-story home focused on both affordability and livability. At just 35-feet wide, this home works on smaller, less expensive homesites. The streamlined foundation is rectangular (cost-effective), requiring just two steel poles in the basement. Only three different-sized windows are used, simplifying ordering. A half-wall at the top of the stairs is less expensive than railings. A more price-focused exterior could include eliminating the second reverse gable and the covered porch, using single-wide windows with shutters in lieu of the double wide windows, and bringing the master bedroom windows together as opposed to the split windows.
Livability is evident throughout. Coming in from the garage there’s a handy bench and a drop zone helping keep clutter contained and out of the kitchen. The front flex room can be purposed as an eating area or home office, and the kitchen island has dual access. On the upper level, the storage is amazing, the five-foot walk-in shower rewarding, and the second-floor laundry is convenient. Plus, there’s 155 square feet over the garage for a kid’s play room or even more storage!
Take a look at other “affordable” home designs:
Plan #35084 the Dane Mills (featured above): a split entry home with main floor laundry or our signature Pocket Office™
Plan #8656 the Irvington: a 4-bedroom, 2-story home that maximizes square footage under roof
Plan #8530BL the Calverton: a top-selling 3-bedroom ranch less than 1,200 sq. ft.