It’s the fall of 2022, and as we prepare for the holidays, it’s a good time to reflect on what’s in store for the home-building industry in 2023. In this blog post, we’ll look at emerging trends in new construction and discuss how they may be affected by factors such as inflation, rising interest rates, and supply chain shortages. We’ll also examine how these trends have changed since the pandemic hit our shores in 2020.
So without further ado, let’s look at some of the top home builder trends for 2023!
Luxury Homes Will Continue To See Strong Sales In 2023
While new home buyer sentiment may fall a bit due to rising interest rates and record inflation, one market that tends to withstand times of economic turbulence is the luxury home market. This is because luxury buyers are typically more financially secure and have a higher tolerance for risk. As a result, we expect to see strong sales of luxury homes in 2023 as buyers continue to seek quality and high-end finishes.
One trend we’ve seen in the luxury home building market is luxury compound homes. These homes include plenty of space to live, work, and play on one property. In addition to the main house, luxury compounds often include guest houses, pools, outdoor living spaces, and other amenities. As more buyers seek out privacy and seclusion, we expect this trend to continue to gain popularity in 2023.
Multi-Generational Homes Will Grow In Demand
Another trend that we expect to see in 2023 is an increased demand for multi-generational homes. This is due to a number of factors, including the rising cost of housing, the aging population, and changing family dynamics.
Multi-generational homes typically have several features that appeal to families, such as separate living quarters, private entrances, and common areas for gathering. They offer space to spread out and find privacy when needed while still being close to loved ones. And as more families are opting to live together in one home to save on costs, this trend is only expected to grow in popularity in the coming year.
The Emphasis On Personalized Spaces Will Continue
Another notable trend we see in new construction is a move away from cookie-cutter homes and toward more personalized, custom-built residences. Homebuyers who can afford to build new homes are increasingly interested in putting their stamp on their home and are willing to pay for this.
This trend is driven partly by the popularity of home renovation shows, which have helped educate consumers about the endless possibilities of customizing their living spaces. As a result, we’re seeing an increase in the use of custom materials and finishes, as well as unique floor plans designed to meet homeowners’ specific needs. This trend will likely continue in 2023 as more homebuyers seek homes that reflect their personal style.
Sustainable Living Will Shift Towards More Of A Necessity
In the past, sustainable living features were often seen as a nice-to-have for new homes. But in the post-pandemic world, we expect this to change. As consumers become more aware of how their choices impact the environment and spend more time in their homes than ever, they’re increasingly interested in making sustainable living a priority.
This shift is already beginning to take place, and we expect to see even more homes with sustainable features in the coming year. This includes everything from solar panels and electric car charging stations to energy-efficient appliances and low-emitting materials.
Digital Technology And Smart Home Automation Will Become A Must-Have
As digital technology advances, we expect a continued increase in newly built homes with digital home automation entering the market. These features offer homeowners several benefits, including increased security, convenience, and energy efficiency.
With so much happening in the world today, homeowners will find a sense of security and comfort in smart home features that enable them to feel more in control of their environment. And with more people adopting the connected lifestyle than ever before, features like voice-activated assistants, hands-free faucets, and automated thermostats are quickly becoming must-haves for new construction.
New Home Builds Will Include A Renewed Focus On Nature
After spending so much time indoors over the past year, it’s no surprise that consumers are craving a connection to nature. Homeowners are looking for a sense of calm and respite from the hustle and bustle of everyday life. This means that builders who emphasize the importance of bringing the outdoors inside will be ahead of this trend in the coming years.
We’re already seeing an increase in the use of larger windows and glass walls, as well as natural interior finishes, including wood and stone, in new home design. An emphasis on creating indoor-outdoor living spaces will also be a continued trend as outdoor living areas will continue to be a popular upgrade feature for new homes. We’re even expecting to see interior courtyards make a resurgence again.
Rising Interest Rates And Inflation Will Impact The Housing Market
While we expect to see strong sales in the luxury home market, the overall housing market is expected to slow down in 2023 as rising interest rates and inflation put pressure on buyers. The combination of these factors is expected to make buying a home more expensive and decrease affordability for many buyers.
As a result, we expect to see fewer first-time buyers and more renters in the market in 2023. This could lead to increased demand for rental properties and decreased demand for new construction mid-level homes. With that said, real estate developers who shift towards Build-To-Rent (BTR) communities, as well as potentially offering manufactured homes as an affordable home-buying option, could find themselves in a good position next year.
Supply Chain Shortages Will Continue To Impact New Construction
Another trend that we’re keeping an eye on is the potential for supply chain shortages to continue to impact new construction in 2023. The pandemic has already caused disruptions to the supply chain in recent years, and as we enter into a period of inflation, these disruptions are expected to continue. This could lead to higher prices for materials, as well as delays in construction timelines.
As a result, we expect to see fewer new homes being built in 2023 than in recent years. This could lead to increased demand and competition for existing homes on the market, as well as rental properties.
All Eyes On The Housing Market In 2023
So there you have it! These are just a few of the trends that we’re keeping an eye on for 2023. With so much uncertainty in the world today, it’s impossible to say for certain what the future holds. But one thing’s for sure, the housing market will be one to watch in the coming year.
What trends are you keeping an eye on for 2023? Let us know in the comments below!
