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What’s Hot in The Custom Home Market In 2023?

Joseph O'Brien by Joseph O'Brien
February 16, 2023
in Guiding
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What’s Hot in The Custom Home Market In 2023?
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For 2023 home buyers, the hottest trends include acquiring a first house as a real estate investment and upgrading features that come with custom homes. After the market rose considerably throughout the past five years, prices are beginning to see a slow decline. That long awaited break could spur buying throughout 2023 and well into 2024.

The custom niche differs in many ways from traditional units, primarily in terms of price and number of sales. However, it’s informative that housing starts have not yet begun to rise because of lower prices. In the residential real estate sector, it often takes at least six months before new construction begins to respond to price declines. Consider the following trends that are already proving to be immensely popular this year.

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  • Real Estate Investment: Economical First Homes
  • Upgrades

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Real Estate Investment: Economical First Homes

Within the vast home buying population, no group of people spends more time and effort identifying and researching properties than first-time buyers. Real estate investment for this demographic of consumers is an up close and personal activity. They’re not purchasing a small rental property or vacation home. Instead, they’re putting everything on the line to acquire a house that will serve as the beginning of their real estate investing journey. Because the real estate investing segment is such an active and vital part of the national economy, many organizations have initiated first time home buyer programs that serve to assist people who are in the process of acquiring their very first house. 

The search, from day one to moving in, can be an exhilarating and rewarding experience because the event is the first step toward property ownership. It doesn’t matter whether you’re looking for a fixer-upper, a starter, or a long-term investment. The main questions focus on location, purchase price, size of the down payment, closing costs, interest rates, and more. The wisest way to proceed is to review an informative guide that includes pertinent information about lender requirements, programs for first-time buyers, special grants, and different kinds of loans.

Upgrades

In contrast to options, upgrades are better or larger versions of features that already come with a custom home. A patio deck might be an option that a buyer can add to the purchase package, while an example of an upgrade would be a larger master bedroom or a wider entryway. Keep in mind that millions of consumers who acquire customized structures love the idea of adding their favorite options to the mix, but upgrades are a more common choice for first-time and experienced buyers alike. What are this year’s favorite upgrades? The list is a long one, but some of the top choices include the following:

  • HVAC (Heating, Ventilation, & Air Conditioning): Among the costliest on the list, HVAC upgrades come in an almost endless variety and can significantly add to the total purchase price.
  • Appliances: Built-in appliances, particularly smart ones, are not so costly, but it’s worth noting that purchasers sometimes opt for as many as a dozen upgraded appliances to enhance the functionality of the kitchen space.
  • Bathroom Tile: Prices and choices abound in this popular category. Buyers love to customize baths, and artistic tiling is one of the best ways to achieve a unique look.
  • Smart Home: Enhancing the smart-home feature is increasingly common for younger owners who want all the tech they can get.
  • Counters: A mainstay of kitchen and bath décor, counters add both form and function to any area. Buyers tend to spend a lot of time coordinating counter styles and colors with bathroom tile, appliance design, and flooring.
  • Doors/Windows: Some owners want more doors and windows, while others are more interested in larger ones that come with special features like reflective surfaces, ergonomic design, and lightweight materials.
  • Flooring: A construction category unto itself, flooring choices and prices exist for every budget and taste. One of today’s favorites in this category is stone or imitation stone flooring.
  • Trim/Cabinets: Upgrading kitchen and bath cabinetry and trim are common for buyers in all income categories. Cabinets and trim are among the most visible of all upgradable features, which is why consumers spend considerable time and money on choosing just the right styles.
  • Electrical: Homeowners sometimes want advanced electrical arrays and complex systems that can handle additional load from a large number of appliances, devices, and sophisticated entertainment components.
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