Long Beach Island New Construction Trends
Building a new home in the Long Beach Island real estate market is one of the best investments you can make on LBI. We usually see about a 20%-30% equity postilion int he finished home which is excellent insulation again any market downturn. This is of course not taking into account he benefit of being able to design a home to your own needs and specifications. When looking to build a new home on LBI it is important to keep in mind the interaction of new contraction and the LBI real estate market. Any new home should be designed keeping the market in mind, both local and nationally.
New Construction and the LBI NJ Real Estate Market
Building sites for single-family houses hit a record high last year, even as lots were the smallest ever, according to data from the Census Bureau’s Survey of Construction. The median lot size sold in 2016 dipped to 8,562 square feet, or just under a fifth of an acre. That’s a small decline from 2015, when the median fell to under 8,600 square feet for the first time. Price-wise, half the lots nationwide were priced at or above $45,000, a value first reached in 2015. Before that, the previous record was the $43,000 posted in 2006, in the midst of the housing boom — two years before the market came apart at the seams. Despite the record-high lot prices, they accounted for less than 17 percent of sale prices of new single-family homes started in 2016, which is the lowest share since at least 1999. The declining share suggests that other construction costs, including labor and materials, are outpacing rising lot values. Meanwhile, despite smaller lots, builders are managing to make their backyards larger, according to research from online real estate brokerage Trulia. The typical house completed so far this year included 7,048 square feet of outdoor space, marking the third year in a row yard sizes have grown. The trend breaks a 25-year run toward smaller outdoor spaces. Yard sizes are increasing because the footprints of the houses themselves are shrinking, as builders try to cut costs by making their houses smaller. At the same time, buyers are demanding better-designed outdoor spaces. Source: Lew Sichelman, UExpress LBI
It is interesting to note that nation-wide trends are shifting to having larger lots and somewhat smaller homes. This trend does seem to be reflected in the LBI real estate market, but only to a point. With smaller than average lots on LBI, having space for a large enough home is still first and foremost in the mind of a buyer in the Long Beach Island real estate market. That said, we have seen more and more buyers asking for external amenities such as pools and outdoor kitchens. Anyone looking to build a new home in the LBI real estate market would be wise to keep these trends in mind so they can remain competitive with the overall market. Fore more information about new construction and the LBI NJ real estate market please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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