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Rising prices can knock first-time buyers out of the market

On Behalf of | Aug 2, 2019 | Real Estate

If you’re living in Pasco, then you may know that the city is booming. You have many new people wanting to move in, and space is limited. That’s why it’s not unusual to see people with homes that have small yards and to see rows of townhouses side by side.

For entry-level buyers, this is the new normal. Why choose townhomes? With an average of only 4,200 square feet, they’re cheaper to build and take up less space. That helps lower land and construction costs.

Lots in the Tri-Cities area are increasing in price every year and that makes land very valuable. For first-time homeowners, buying any kind of single-family residence on its own lot might be cost-prohibitive, but a townhome is different.

In 2018, it cost around $65,000 and $135,000 for lots in western Pasco. As a result, homebuilders had to adapt to those rising costs to keep housing affordable. The best way for them to do that was to focus on an approach with townhomes. Townhomes are becoming more popular, with development growing at a rate of around 23% yearly.

Why does this matter? In Pasco, the average price of a home was $377,000. That certainly knocks many first-time buyers out of the market. However, with townhomes on the market, it can be possible to find a home for less than $300,000, which is more affordable for people who are just starting out.

Buying the right home is an investment that you need to make cautiously. Your attorney will help you with the contract, so you’re protected.