A recent Housing Perspectives from Harvard’s Joint Center for Housing Studies says that even though overall construction is down, construction of smaller homes (under 1,800 sq. feet) has actually increased 20% in 2016. They say this is significant because 1st-time and lower income buyers tend to purchase smaller homes – which tend to be less expensive. They suggest that continued increases in the supply of smaller homes, as well as townhouses and condos, could help meet the demands of those first-time and lower income homebuyers. Sounds like a good play for investors.
“Increased demand for entry-level housing and the corresponding uptick in smaller housing construction have already contributed to the growing number of first-time homebuyers in 2016.”
