The BROKER’s BLUEPRINT: New Construction on the Up & Up
Written by: Andrew Goodman
The Metropolitan DC real estate market has hit the ground running in 2016. We usually see the spring market kick off the New Year, but buyers are already out in full force. Millennials and empty nesters are trying to move closer into the city while growing families are looking for larger homes with more land. Unfortunately, land in and around DC is pretty pricey which is why more families are looking for other affordable locations to plant their roots and developers are taking advantage of that demand.
Areas such as Laurel, Urbana, even as far north as Hagerstown and as far south as Stafford are seeing an influx of demand as developers are putting up homes rapidly to accommodate the increasing demand.
Ryan Homes & Dan Ryan Builders are building a development in Hagerstown called Westfields in hopes to attract the growing family that wants a single-family home with at least a quarter of an acre of land for around $300,000. They know what we all know, $300,000 doesn’t get you much in Montgomery County and Frederick County isn’t much cheaper.
Brookstone Homes is doing the same thing in Stafford County. In the Poplar Estates community, they are building 4000sqft+ homes on 3-acre lots to give folks the privacy they have been looking for. Who knew that buyers would be paying $500,000+ in Stafford? Buyers are willing to make the commute, partially due to the new EZ Pass lanes on 95, to retreat to a home that they enjoy and can’t touch their neighbor’s home through their window.
The Wincopia Farms subdivision in Laurel has so much demand that several developers have teamed up to develop the community. NV Homes, Pulte Homes, and Beazer Homes are building townhomes and single-family homes for growing families in Howard County to avoid the price points of homes in nearby Montgomery County.
Now don’t get me wrong, the demand to move closer into or around the city is still there! Remember in real estate, the most common slogan is Location! Location! Location! The demand has and will continue to be high for housing in the city. Unfortunately, the rising prices have just caused many buyers to look outside the city for bigger and better housing options. Many baby boomers who moved to the suburbs to grow their families, have now decided to move closer in to enjoy walkable conveniences and to take advantage of what the city has to offer, since their kids have fled the nest. New construction in the city is also increasing to keep up with this demand. Buildings that were built 10-15 years ago are now being torn down to build up higher and maximize space (unfortunately, height restrictions in DC only allow developers to build so high.) New high rises are being built in Bethesda and Arlington to maximize space while town centers are being built in Rockville, Gaithersburg, Alexandria, etc. to take advantage of the space they still have, and to accommodate the influx of new residents from recent development.
While 2015 was a great year for the local real estate market, 2016 shows signs to be even better. Interest rates and loan requirements may hinder some folks, but the Nation’s Capital and its surrounding areas always has someone else ready to take advantage of our flourishing real estate market!