Buying a brand-new home with modern finishes, new appliances, a builder warranty and perhaps a community pool doesn't sound like the most affordable way to become a homeowner.
But in many housing markets, the median newly built home now costs less than the median existing home.
Across the Austin metro area, production-built communities in suburban locations offer compact detached homes with shared amenities in the mid-$300,000s — well below the metro area's $473,500 median listing price in June.
Austin is a leading example of how builders are responding to the housing affordability crunch. Rather than focusing on larger, higher-priced homes, many production builders are increasingly offering smaller, more attainable homes aimed at middle-class buyers priced out of more expensive neighborhoods. These homes typically range from roughly 1,200 to 2,000 square feet on smaller lots that help keep prices within reach.
"Some of this inventory is meant to be affordable. It's meant to compete on price with existing homes," Joel Berner, senior economist at Realtor.com, tells CNBC Make It.
