Weekly Expert Update {Market Report} – February 21, 2022

3D Printing Offers Affordable Housing Solutions

The cost of building a home has risen an average of $25,000 since the beginning of the pandemic, with increasing costs and supply shortages leading many builders to scale back their new builds. A lack of housing supply plus higher sales prices has resulted in a shortage of affordable housing, particularly in rural, economically distressed, and underserved communities.

Enter 3D printing. Innovative companies are turning to the technology to produce materials used in building homes, reducing costs for both builders and buyers. While these homes tend to be on the smaller side (typically ranging from 1,200 to 1,500 sq. ft.), most offer the amenities and options buyers seek. Some even provide environmentally friendly efficiencies: one study found that 3D-printed homes may use 50% less energy than their traditionally built counterparts.¹

Residential Construction Employment Grows

Good news for the construction industry: Employment in residential building construction is up 5.3% compared to early 2020. Builders added a total of 4,400 jobs in January 2022 — a good sign for an industry hard-hit by supply chain issues and labor shortages.⁴

5 Things Your HGTV-Loving Buyers Might Not Know

We all love an inspiring home improvement show, especially the ones featuring 30-minute transformations. But these shows could be setting your buyers up for disappointment. Here’s why:

• Realtors work a lot
  Some shows make it look like the real estate agent has a super easy job. Your clients might need a reminder of everything you do to get them into their dream home, from finding the right properties to negotiating contracts to preparing for closing.

• A “dream home” may not be perfect
  Most of these shows have sponsors who provide all the newest materials and finishes, leading some buyers to think they must check off all their “must-haves” before landing on a property.

• Renovating is expensive
  Construction shows can make it seem like home renovation projects can be completed for little money in days, or even hours. Encourage clients to meet with a licensed, bonded, and insured contractor before committing to a big project.

• Location is important
  Buyers on renovation shows often choose style over location. You can help your buyers avoid this critical mistake by finding a property with the features they need in an area that works for their lifestyle.

• Buyers are armed with knowledge
  Some shows portray buyers as naïve, but most conduct hours of research before even starting their search. Remind your buyers that they know more than they think they do — and to follow their instincts when it’s time to decide.⁵