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The Latest Builder Trend: Smaller, More Affordable Homes in Los Angeles and Beverly Hills, CA

The Latest Builder Trend: Smaller, More Affordable Homes in Los Angeles and Beverly Hills, CA

By Christophe Choo Posted Sep 18, 2024 Latest Updates

The Latest Builder Trend: Smaller, More Affordable Homes in Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

While the real estate market in luxury hubs like Los Angeles and Beverly Hills may be known for sprawling estates and high-end amenities, a notable shift is happening in the housing industry nationwide. Builders are responding to increased affordability concerns by constructing smaller, more budget-friendly homes. This trend can be particularly impactful in cities like Los Angeles, where housing prices have historically been high.

Builders Are Focusing on Smaller Homes

During the pandemic, many homebuyers in Los Angeles and Beverly Hills sought expansive properties with additional square footage to accommodate home offices, gyms, and entertainment spaces. As a result, builders constructed larger homes to meet that demand. However, with affordability remaining a challenge, the focus is shifting to smaller single-family homes that cater to buyers seeking more affordable options.

In neighborhoods like West LA, Brentwood, and Beverly Hills Post Office, the trend is evolving to include slightly smaller luxury homes that balance elegance with practicality. According to data from the National Association of Home Builders (NAHB), today’s buyers are seeking homes around 2,070 square feet, compared to the larger homes of the past, which averaged around 2,260 square feet. This shift is driven by the desire for more affordable properties without sacrificing location or quality.

Why Builders Are Adapting to the Trend

Builders in markets like Los Angeles and Beverly Hills are recognizing that buyers want more affordable options without compromising on location or amenities. By offering smaller homes, developers can meet the demand for luxury living with a more manageable price tag. According to Orphe Divounguy, Senior Economist at Zillow:

“Cash-strapped buyers continually seek lower-cost options, and developers are adjusting by producing homes with smaller footprints.”

In prime areas like Beverly Grove, Hollywood Hills, and Culver City, developers are incorporating modern, efficient designs into slightly smaller homes that still offer luxury finishes, top-of-the-line appliances, and proximity to some of LA’s best amenities. This focus on building to meet affordability concerns opens the door for more buyers to enter high-end markets that were previously out of reach.

Benefits of Buying a Newly Built Home in LA and Beverly Hills

For buyers in Los Angeles and Beverly Hills, smaller newly built homes offer several advantages beyond affordability. Many builders are offering key incentives, such as price reductions, mortgage rate buydowns, and other perks to make the homebuying process more manageable. According to John Burns, CEO of John Burns Research & Consulting:

“The monthly payment matters more than anything else, and builders have responded with smaller, more efficient homes.”

These incentives, combined with the lower price tags of smaller homes, make luxury properties in areas like Bel Air, Pacific Palisades, and Santa Monica more attainable. Plus, newly constructed homes come with modern designs, state-of-the-art technology, and fewer maintenance needs, which can save buyers time and money in the long run.

Bottom Line

As builders focus on smaller homes to address affordability concerns, buyers in Los Angeles and Beverly Hills now have more options that cater to both their budgets and their desire for high-end living. If you’re thinking about purchasing a home in one of LA’s most desirable neighborhoods, this trend toward more efficient, budget-friendly homes could be a game-changer. Let’s connect to explore the newly built homes available in your desired area and see how you can benefit from these market shifts.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value

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