The supply of modestly priced starter homes continues to drop nationwide. A recent report by Realtor.com found that the number of homes priced above $750,000 grew 11 percent last year, while the number of starter homes priced under $200,000 fell by 8 percent.
Home values and rent continue to increase, but average salaries across the United States are not increasing at the same percentage. Consider that the average home value in 1950 was $7,400 and the household median income was $2,990. In 2010, however, the median home value was $221,800 (an increase of nearly 2900%) while the household median income was $49,445, which is an increase of only 1554% (source: U.S. Census Bureau via Curbed). That disparity is one of the reasons that the American starter home is out of reach for many entry-level buyers.
But designing and building starter homes doesn’t have to be restrictive in order to keep costs at bay. Rather, smart design and smart product selection can help buyers achieve the American dream without sacrificing quality.
Some of the challenges when building starter homes:
KB Home, who partners with LP, takes advantage of LP® TechShield® Radiant Barrier, an easy, low cost energy efficient upgrade, and is at the forefront of companies trying to boost the supply of affordable entry-level homes. In KB Home’s Q1 earnings call, Chairman/CEO Jeffrey Mezger said that “offering more affordable products within our communities is also key. Our efforts to address affordability concerns by expanding the choice of square footages available to homebuyers are well underway, and we expect to continue to introduce lower square footage plans in select communities in the months ahead. A good example is our new Autumn Winds community in Riverside County, California. We added 1,400 and 1,500 square-foot plans to complement our initially planned lineup for this community, which had ranged from 1,600 to 2,400 square feet. Since the opening, these two small plans have generated about 25 percent of this community’s net orders.
Nationwide, smaller metro areas continue to be the most affordable entry points for first-time homebuyers. A recent U.S. News and World Report found that would-be buyers in Huntsville, Alabama, and Ft. Wayne, Indiana, only needed to earmark 19 percent of their income toward housing – far less than the percentage needed in the top 20 markets in the U.S.
With temperatures dropping, insulation and protecting new construction against the elements are top of mind. Of course, builders must consider how insulated wall sheathing can help meet code requirements and contribute to the overall performance of the building envelope. However, they must also carefully consider potential moisture problems both during and after the build and the potential impacts of freeze/thaw cycles. With the season of potential hard freezes followed by fast warm-ups upon us, let’s explore methods for choosing the best house sheathing for cold climates.Continue Reading
With housing demand at an all-time high, builders do not have the ability to halt home construction during the winter months. Builders can work safely year round, even building houses during winter with planning and preparation. Advanced products and installation methods allow work to be performed during wet and very cold temperatures, but builders also need to consider winter safety for construction workers.
Engineered wood siding has long been considered a trustworthy exterior product for single-family homes, but it is often overlooked for multifamily and commercial construction. LP® SmartSide® products are versatile enough for a range of builds beyond traditional single-family homes. Take a look at the homes featured in Madison Parade of Homes for siding inspiration and to see how LP SmartSide Trim & Siding might suit your building needs.
If 2020 was the year of uncertainty, then 2021 was a year spent adjusting to new norms. What kind of year will 2022 be? We checked in with LP Building Solutions executives to reflect on the past year and to get their predictions for the year to come.