Kansas City Builders Are Building Smaller Homes

There's no way around it—affordability is still tight for many Kansas City homebuyers. Are you currently trying to buy a home in the KC area? This could mean looking at smaller houses to find one within your budget, but there is a silver lining to this change—many home builders have set their focus on building smaller homes right now, and they're offering incentives. These housing alternatives can open up more Kansas City options that fit your budget and homeownership goals.

Newly Built Homes Are Trending Smaller

During the pandemic, homebuyers wanted (and could afford) larger homes – and builders across the nation delivered. Larger homes were built to offer homeowners an office to work from home, space for a home gym, rooms to adapt for virtual school, and more.

However, with today's affordability challenges, Kansas City builders are shifting their attention and adding smaller single-family homes to the housing market. The graph below uses data from the Census to show how this national housing trend has evolved over the last few years:

So, why the transition to less square footage? Builders will make homes they know will sell by focusing on where homebuyer demand is strongest. As Kansas City mortgage rates began to climb and consumers felt affordability challenges creeping in, there was (and is) an unmistakable need for smaller homes. As the National Association of Home Builders (NAHB) explains:

"After a brief increase during the post-covid building boom, home size is trending lower and will likely continue to do so as housing affordability remains constrained."

A recent article in the Real Deal explains how this helps Kc homebuyers:

"Even a slightly smaller home can be thousands of dollars cheaper — for both builders and buyers. . . In response to affordability challenges, major homebuilders are shifting priorities away from the big ticket homes and towards the cheaper set."

What Does This Mean for You?

Are you having trouble locating a home in the Kansas City area that aligns with your budget? The Just Say Home KC real estate team can connect with trusted KC builders and look at smaller homes to know if this option is right for you. Considering new builds can offer a few other fringe benefits to help on the affordability front – like home price reductions or mortgage rate buy-downs. As NAHB says:

"More than one-third of builders cut home prices in 2023. NAHB expects builders to continue offering smaller homes and more affordable designs as housing affordability remains a barrier to homeownership."

As Charlie Bilello, Chief Market Strategist at Creative Planning, explains:

"Homebuilders are adapting to the lowest affordability on record by building smaller homes and offering more incentives/price cuts. The median square footage of a new single-family home in the US has moved down to its lowest level since 2010."

By exploring these property options, you'll enjoy brand new everything, a house with fewer maintenance needs, and some of the latest features available. That's worth looking into. 

Bottom Line

Are you a Kansas City homebuyer facing affordability challenges? KC builders are offering smaller homes, and many come with incentives. The Just Say Home real estate experts can help you locate smaller, newly built homes available in the Kansas City area. Work with these experienced buyer's agents to find a home that fits your budget and homeownership goals today.

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