Get More for Less: Smaller Homes Tailored for Your Budget!
webadmin • October 4, 2024
Get More for Less: Smaller Homes Tailored for Your Budget!
Buying a home can feel challenging these days, but there’s some good news for potential buyers. Builders are shifting their focus to constructing smaller, more affordable homes, and they’re also offering special incentives to make homeownership more attainable. These changes can make it easier to find a home that fits your budget.
Today, the market looks different. Affordability is a major concern for buyers, so builders are now creating smaller homes to match what people can afford. In fact, the National Association of Home Builders (NAHB) says that homebuyers are looking for homes around 2,070 square feet, compared to 2,260 square feet just 20 years ago.
Why the change? Builders know that smaller homes usually come with smaller price tags. As a result, they’re building more homes with less square footage to meet the demand for affordable options. Orphe Divounguy, a Senior Economist at Zillow, explains:
“Buyers are looking for lower-cost options, and builders are adjusting the type and size of homes they offer to match that need.”
Why Builders Are Focusing on Smaller Homes
A few years ago, during the pandemic, many people wanted larger homes. Buyers needed space for home offices, gyms, and extra rooms for kids learning online. Builders responded by creating bigger homes to meet those needs.Today, the market looks different. Affordability is a major concern for buyers, so builders are now creating smaller homes to match what people can afford. In fact, the National Association of Home Builders (NAHB) says that homebuyers are looking for homes around 2,070 square feet, compared to 2,260 square feet just 20 years ago.
Why the change? Builders know that smaller homes usually come with smaller price tags. As a result, they’re building more homes with less square footage to meet the demand for affordable options. Orphe Divounguy, a Senior Economist at Zillow, explains:
“Buyers are looking for lower-cost options, and builders are adjusting the type and size of homes they offer to match that need.”
How Buying a New, Smaller Home Could Benefit You
If you’re struggling to find a home within your budget, looking at newly built homes might be a great option. Many builders are offering incentives to make new homes even more affordable. For example, some are offering price reductions or mortgage rate buy-downs, which can lower your monthly payments.Recent data from Zonda shows that more than half of builders are providing these types of incentives. John Burns, CEO of John Burns Research & Consulting, says:
“The monthly payment is what matters most, and builders are responding by creating smaller, more efficient homes.”
Another benefit of buying a newly built home is that everything is brand new, so you’ll have fewer maintenance needs. Plus, new homes often come with modern features and energy-efficient technology, which can save you money over time.
Bottom Line
Builders are focusing on creating smaller, more affordable homes, which could give you more options when it comes to finding a home that fits your budget. If you’re ready to start your home search, let’s connect and see what’s available in your area.
Here at Luminate Home Loans, we’re always looking for ways to offer more value to our clients and partners. That’s why we’re thrilled to announce that we’re now a wholly owned subsidiary of Luminate Bank®—and soon, we’ll officially transition under the Luminate Bank® name.
For years, homebuyers have been hoping for a return to the ultra-low mortgage rates seen during the pandemic. But as we move through 2025, it’s becoming increasingly clear that today’s rates—hovering between 6% and 8%—aren’t going anywhere.
Luminate Bank® Welcomes Josh Eifert as Chief Financial Officer, Honoring Legacy of Dave Turk [Minneapolis, Minn.] – [2/4/2025] – Luminate Bank® is proud to announce the appointment of Josh Eifert as its new Chief Financial Officer, succeeding Dave Turk, who has played a pivotal role in shaping the company's strong financial foundation. Josh brings a wealth of experience and strategic vision to Luminate Bank, with 26 years in the banking industry. Most recently, Josh served as CFO at Tradition Capital Bank in Edina, Minnesota, where he led the financial strategy during its remarkable growth from $300 million to more than $2.5 billion in total assets. Before his tenure as CFO, Josh contributed to Tradition Capital Bank in other key financial roles. He began his career with Norwest and Wells Fargo Banks, gaining extensive expertise in financial and operational capacities. Luminate Bank's leadership transition reflects the company's thoughtful succession planning, ensuring its financial strategies remain robust and forward focused. Under the leadership of Dave Turk, Luminate Bank has built an exceptional financial infrastructure, delivering consistent results and creating a foundation that positions the company for continued success. Luminate Bank's CEO, Marc Campbell, shared his confidence in the appointment: "Josh not only brings exceptional financial acumen and strategic insight to Luminate Bank, but he also embodies the principles that define our organization: integrity, innovation, and a steadfast commitment to excellence," Luminate Bank's CEO, Marc Campbell, shared with confidence. "His leadership will ensure our financial strategies succeed and inspire confidence across all who depend on us." "I am honored to join Luminate Bank at such an exciting time. The company's remarkable history of financial excellence and its forward-thinking approach align perfectly with my values and vision," stated Josh Eifert. "I look forward to collaborating with the talented leadership team to build on this strong foundation and drive continued success for our customers, employees, and stakeholders." Josh graduated from the University of Minnesota with a degree in finance and completed the Graduate School of Banking at Colorado. CEO Marc Campbell expressed gratitude for retiring CFO Dave Turk's contributions, saying, "Dave has been instrumental in positioning Luminate as a financial leader. His dedication, insight, and stewardship will always be a part of our company's legacy." Josh Eifert will officially assume his role on February 18, 2025. About Luminate Bank® At Luminate Bank, We Open Doors—empowering individuals and families to achieve their financial dreams through personalized service and innovative digital solutions. As a nationwide bank headquartered in Minneapolis, Minnesota, we are committed to helping our clients meet their financial goals with a blend of modern technology, traditional values, and the trusted guidance of experienced professionals. Known for our exceptional commitment to customers, we take pride in delivering a seamless, supportive experience for every step of the journey. Our dedicated mortgage division has branches and a team of loan originators across the US, making expert home financing solutions accessible to communities nationwide. Luminate Bank is committed to safeguarding your money and accounts with FDIC insurance coverage up to applicable limits. Learn more about how we can open doors for you at www.luminate.bank , follow us on Instagram, LinkedIn, and Facebook, or call (952) 939-7200. For media inquiries, please contact: Debbie Schwake, CMO debbie.schwake@luminate.bank
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