SALT LAKE CITY, Utah (KUTV) — There is pressure to build more homes in an effort to lower costs, but a new report shows that the growth of new builds has slowed in the United States.
About 27% of for-sale homes are newly built, which is the lowest share in four years, according to Redfin. However, this is still well above pre-pandemic levels.
Newly built homes are making up a smaller share of inventory than they were several years ago because the supply of existing homes has rebounded. Some homebuilders are also starting to slow construction of new projects as they work to sell their inventory.
Utah, Idaho, and Texas have experienced the most new-build housing growth in recent years, as buyer demand is high. These states have less expensive housing prices than heavily developed coastal markets and have fewer regulations that tend to limit new construction.
According to a report earlier this year, Utah leads the nation with an increase in housing units.
Builders of these new homes are offering incentives such as paying for closing costs and new appliances to attract buyers, while the home price tends to be more expensive, according to the report by Construction Coverage.
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