This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
You might pay a lot, but things may go more smoothly than in previous years.
Image source: Getty Images
When my husband and I bought our new construction home about 14 years ago, we were initially told that our expected move-in date would occur during the month of June. In reality, our build was delayed by almost six months, forcing us to bounce around in temporary housing and on other people’s couches until our new home was ready.
But a six-month delay isn’t so unusual in the world of new construction. In fact, it’s a minor delay compared to the holdups new construction buyers have faced in recent years.
Things may finally be improving in that regard, though. So if you’ve had new construction on your radar, 2023 may be a good year to go after it.
You might experience fewer delays
There’s a reason new home builds were extensively delayed from 2020 through 2022. In 2020, the COVID-19 pandemic hit, and a lot of construction projects had to be paused due to health and safety concerns.
In 2021, supply chain backlogs came to a head, and new construction projects were delayed by virtue of builders not being able to get the materials needed to complete their work. Those issues persisted in 2022, though to a lesser degree than in 2021.
But at this point, some supply chain issues have been resolved within the context of home building. This isn’t to say that buyers of new construction won’t experience holdups. You never know when a given tile, cabinet, or appliance might end up on backorder, thereby delaying your build by weeks or even months. And you never know when a builder might get delayed due to municipal hiccups, like having to wait for a permit to get issued.
But for the most part, builders aren’t grappling with the same supply chain issues they were over the past couple of years. So if you buy a new construction home in 2023, you may find that your build isn’t delayed to a ridiculously extreme degree.
Is a new construction home right for you?
There are definite benefits to buying new construction. For one thing, you may get the option to customize certain features of your home (for example, pick your own countertops and flooring), and once you move in, you’ll be guaranteed a home in top condition. Plus, the new appliances your home is loaded with should come with warranties, which means you may not have to worry about extensive — and expensive — home repairs for a good number of years.
On the other hand, the cost of new construction can be much higher than the cost of a home that was previously lived in. And given that mortgage rates are so high these days, affordability issues could be a problem.
You’ll need to crunch your numbers carefully to make sure you can swing the mortgage payments a newly built home will leave you with. But if you do decide to move forward with new construction, you may find that you’re not subject to such disruptive delays as supply chains finally catch up to demand.
Our picks for the best credit cards
Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
