The Home Nation eHome building method is emerging as a far more affordable option for new construction compared to traditional methods, largely due to its significantly lower cost per square foot. With the eHome costing approximately $140 per square foot, it offers substantial savings compared to the national averages of $209.70 per square foot price for new traditional homes and the $213.20 per square foot rate for existing homes, making it a game-changing option for affordability-conscious buyers.
New Construction vs. Existing: Shifting Value Dynamics
In recent years, new construction homes have transformed from a premium purchase to a more value-driven choice. Traditionally, new builds commanded a premium of $15 to $22 more per square foot compared to existing homes, but the landscape has changed dramatically. As of May 2024, according to Zillow Research, new homes sold for $3.50 less per square foot than existing homes, marking the largest discount observed in six years.
This shift is part of a broader trend as homebuilders adapt to affordability challenges, offering discounts and incentives that homeowners selling existing properties do not. For instance, about 29% of new homes received price cuts in June, and over half of builders (61%) provide additional sales incentives like mortgage rate buydowns and closing cost coverage. These factors contribute to making new builds a compelling choice, particularly as the market grapples with affordability issues.
Home Nation eHome: A Clear Winner in Cost Efficiency
While traditional new construction homes have started to close the gap with existing homes on a price-per-square-foot basis, the Home Nation eHome method stands out as an even more budget-friendly option. At approximately $140 per square foot, eHome is dramatically cheaper than both traditional new builds and existing homes. This cost advantage makes it an ideal solution for buyers looking for affordability without compromising on quality or modern amenities.
Downsizing Lots and Home Sizes: The New Norm
One reason new construction homes have become more affordable per square foot is the reduction in lot sizes and home sizes. Since 2018, the average lot size for new homes has decreased by 460 square feet, compared to just a 94 square foot reduction for existing homes. New builds are also smaller, shrinking by 185 square feet—the size of a decent bedroom—while existing homes have only seen a 24 square foot decrease.
These trends are in response to rising land costs and the scarcity of buildable land, pushing builders to maximize efficiency and keep costs manageable. By contrast, the Home Nation eHome method capitalizes on these trends, utilizing efficient designs and streamlined construction processes to deliver even more significant savings to buyers.
A New Strategy in a Tight Market
The affordability of new construction is critical as the nation continues to face a severe housing shortage, with an estimated 4.5 million homes needed to meet current demand. New builds have played a vital role in adding inventory, especially as many homeowners remain locked into low-rate mortgages from prior years, limiting the supply of existing homes on the market.
However, the Home Nation eHome approach offers a more strategic advantage by producing homes that are not only faster to build but also significantly cheaper. This method directly addresses the affordability and inventory challenges that have plagued the market, offering an attractive alternative for budget-conscious buyers.
A Smart Choice for Today's Buyers
New construction buyers often cite move-in readiness and minimal need for repairs as major draws, but affordability remains a top priority. Nearly 43% of buyers prefer new builds because they require no updates, and 89% of new-build buyers emphasize the importance of staying within budget. The Home Nation eHome building method aligns perfectly with these priorities, delivering modern, efficient, and cost-effective homes at a fraction of the price of traditional new builds.
Additionally, the cost savings of a new energy efficient building and airtight building envelope (the eHomes uses SIPs - Structural Insulated Panels - to gain superior energy efficiency) add to the value proposition for the eHome buyer.
In conclusion, the Home Nation eHome method represents a pivotal shift in new home construction, offering an unmatched combination of affordability, efficiency, and convenience. As traditional new construction homes strive to offer more value, eHome sets a new benchmark, proving that quality new builds don’t have to come at a premium.
As Paul Comino, the founder of Home Nation says, “The eHome is a SAFE new home alternative: Simple, Affordable, Fast and Energy Efficient.”
