New Construction Increases Louisville Home Prices

We all know the rule of supply and demand, but data shows that in the case of real estate, more new homes doesn’t necessarily mean lower home values.

In fact, from 2011 to 2015 (the most recent years available since the recession), the number of new construction homes sold in Louisville has increased by 33{459c3f97d3807641e44bb01632b2f91916cef314d016c0f749c2f3d2b32b4e27}, while the average sale price of these Louisville single-family homes went up by 19{459c3f97d3807641e44bb01632b2f91916cef314d016c0f749c2f3d2b32b4e27}.

According to statistics from Trulia, the value of pre-existing homes in Louisville saw an increase of over 10{459c3f97d3807641e44bb01632b2f91916cef314d016c0f749c2f3d2b32b4e27} during the same period, and another 3.5{459c3f97d3807641e44bb01632b2f91916cef314d016c0f749c2f3d2b32b4e27} is expected within the next year.

These trends are causing industry experts to believe that more homes actually lead to increasing home values. This phenomenon is primarily due to the fact that many of these new-construction homes, like the homes from Elite, are built to the latest construction codes and design standards. They also feature high-end finishes, energy-efficient features, and resort-style amenities.

Since homebuyers are willing to pay more for these incredible features, the values of new-construction homes continue to rise, which in turn increases the values of existing homes.

Two More Benefits of New Construction 

  1. Increased Tax Revenues. According to data from the National Association of Home Builders (NAHB), significant tax revenues are generated from new construction homes and the residents that live in them. In fact, the tax revenue not only pays for the governments’ costs to extend services to the new homes, but the additional revenue usually leads to greater amenities, finer landscaping, and higher quality upkeep of nearby neighborhoods.
  2. More Jobs. A recent NAHB report also shows that “building 100 single-family homes in a typical metro area creates $297 full-time jobs and generates $28 million in wage and business income and $11.1 million in federal, state and local tax revenue.”

At Elite Homes, we build 90 to 150 luxury new-construction homes a year throughout Greater Louisville’s most coveted subdivisions. To learn more, contact us now.

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