According to home services network Porch.com, certain things will be very different by 2036 regarding new home construction. The company’s research team released a study forecasting some basic details about houses built over the next 20 years, and while a port for your flying car is not included in the study, other things will drastically change.
According to the study, the average new construction home in 2036 will boast 3,000 square feet and sell for $305,000. That is an additional 400 square feet over 2016 new construction homes and an additional $107,000 on the price tag. Although the researchers predicted lot prices will remain around $19,000, the average size will fall significantly—from 31,000 square feet in 2016 to 25,000 square feet in 2036.
Financing and Common Features to Change as Well
One notable change predicted is that far fewer homes will be purchased with a conventional loan in 2036. In 2016, 68% of homes were purchased using a conventional mortgage loan. However, by 2036, Porch predicts this type of loan will only be used to purchase 58% of homes.
“When it comes to purchasing new homes…the use of cash is expected to rise slightly [and] the use of FHA home loans could more than double by 2036 from the number of Americans having utilized them in 1999,” the team wrote. Porch observed that in 1999, more than 75% of new builds were purchased using conventional home loans. “With lower overall down payments and easier approval ratings, FHA home loans provide access to more lenders with different criteria, making owning a home more accessible for millions of potential buyers.”
Another notable change: buyer preference for porches. The team predicted porches will replace decks as the preferred area for outdoor living. “The American front porch debuted as far back as the early 1700s, and this iconic piece of American architecture could be coming back in a big way over the next 20 years,” the report read. In fact, they predicted about 82% of new builds will have porches—not decks—by 2036.
Regional Changes in New Construction
One thing less likely to change over the next 20 years in new construction is the location of new developments. A third of new homes were built in the South Atlantic states in 2016, according to the study. This region includes Florida, Georgia, and Virginia. This is likely due to a growing workforce in the area and a relatively inexpensive cost of living. Porch predicts new homes built in the South Atlantic region trend will be stable, at around 31%.
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