The Rise of Compact Living: Embrace Smaller, More Affordable Homes

Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief Economist at Zonda, has to say – smaller, more affordable homes are on the way:

“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”

In some ways, smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today (see graph below):

This graph also shows how the size of homes on the market changes seasonally. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move.

That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.

That’s great news because, as Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), states, the need for these types of homes has gone up recently:

“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”

What Does This Mean for You?

The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders bringing smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consultingsays this about a potential increase in the availability of smaller homes:

“It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”

Bottom Line

If a smaller, more affordable home sounds appealing to you, good news – they’re coming. To keep up with what’s available in our area, let’s connect.

1036 Properties
Page 1 of 87
$384,999
Neighborhood: Port Charlotte Sub 05
4
Beds
2F11/2
Baths
2,031
Sq.Ft.
1999
Year Built
1
Day on Site
D6136065
MLS
$385,000
Neighborhood: Port Charlotte Sub 51
3
Beds
2
Baths
1,679
Sq.Ft.
1999
Year Built
1
Day on Site
C7491166
MLS
$619,500
Neighborhood: Bobcat Trail
4
Beds
3
Baths
2,411
Sq.Ft.
2003
Year Built
1
Day on Site
C7490997
MLS
$424,000
Neighborhood: Port Charlotte Sub 19
3
Beds
2
Baths
1,425
Sq.Ft.
2004
Year Built
1
Day on Site
N6132389
MLS
$940,500
Neighborhood: Port Charlotte Sub 50
3
Beds
3
Baths
2,335
Sq.Ft.
1992
Year Built
1
Day on Site
C7491090
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$440,000
Neighborhood: Port Charlotte 51
3
Beds
2
Baths
2,099
Sq.Ft.
2004
Year Built
1
Day on Site
O6196188
MLS
$360,000
Neighborhood: Port Charlotte Sub 51
3
Beds
2
Baths
1,788
Sq.Ft.
2004
Year Built
1
Day on Site
O6196443
MLS
$439,000
Neighborhood: Warm Mineral Spgs
3
Beds
3
Baths
1,887
Sq.Ft.
2006
Year Built
1
Day on Site
N6132406
MLS
$354,900
Neighborhood: Port Charlotte Sub 23
3
Beds
2
Baths
1,464
Sq.Ft.
2024
Year Built
1
Day on Site
O6197632
MLS
$340,000
Neighborhood: Port Charlotte Sub 18
3
Beds
2
Baths
1,807
Sq.Ft.
2007
Year Built
1
Day on Site
A4607811
MLS
$195,000
Neighborhood: Harbor Isles Ph 5
2
Beds
2
Baths
1,137
Sq.Ft.
1993
Year Built
2
Days on Site
N6129929
MLS
$530,000
Neighborhood: Port Charlotte Sub 49
3
Beds
2
Baths
1,913
Sq.Ft.
2024
Year Built
2
Days on Site
C7491362
MLS

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