Richmond Real Estate Development Trends


Smaller lots cater to first-time homebuyers

The developer of Veranda, a master-planned community at Williams Way Boulevard and Veranda Trails Parkway, is catering to the first-time homebuyer by planning to build homes on smaller lots.

What we have seen over the years is that developers are not really catering to that first-time homebuyer.

The community will offer just under 2,000-square-foot town houses priced from $200,000-$300,000 on its 2,000-home, 589-acre property. Designs for the 54 town houses will be complete in July for construction to begin.

Veranda had already planned on catering to the first-time homebuyer, but the economic downturn in 2016 reinforced that plan because builders had to adjust to what buyers were willing to spend.

Last year, when oil prices were real low, what we were finding was that builders were really having to cut their margins down to really get that affordable buyer and affordable plan that people wanted to buy.

Buyers who would normally spend $350,000 on a home scaled back to a $300,000 purchase.

For years, affordable was considered something in the $100,000s to $200,000s and then four or five years ago, home price appreciation really hit the Texas region, and it was rare to find a good quality home for under $300,000. Now, the builders themselves are really starting to take that into account in offering more sort of standard features, maybe not upgrading everything in a home, and are able to really save costs to drive that price down.

In addition to smaller, more affordable houses, another trens in new construction is buyers who want homes with layouts that will accommodate multigenerational families.

It’s not just husband and wife and kids living in these homes anymore. We’re finding a lot more you’ve got mothers and fathers moving in with the kids.

Contact An Agent Today