Builders target first-time home buyers

Posted at 10:51 PM, Dec 30, 2015
and last updated 2015-12-31 01:59:13-05

With high demand for entry-level homes in Colorado, some builders are now shifting their focus to houses first-time homebuyers could actually afford.

"My wife suggested that we build a brand-new house," said Brandon Lindemann, who said their rent was going up and they were afraid of getting into a bidding war on a existing homes. "If we built a house, we wouldn't have to compete with other buyers." 

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Two months ago, they closed on a home in Castle Rock's Terrain development, designed specifically for entry-level home buyers -- with prices starting in the low 300s.

"We've had pretty significant interest here in Castle Rock. We opened these models about a year ago and had a waiting list for the lots as we released those," said Matt Osburn, the TriPointe division president in Colorado.

Nationally, the builder is expanding the number of offerings for first-time buyers from 35 percent to 40 percent, said Osburn.

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In Colorado, the Debut collection will soon be offered in Arvada and potentially other locations now being considered.

For years, now builders have targeted move-up or luxury homes, but nationally more are turning their attention to the entry-level market.

"There are some trade-offs that you make to get into a more affordably priced home," said Osborn. "And so I think developers and builders are really looking for some of those alternatives."

In Terrain, the lots are about 10 percent smaller than average lots and the homes are smaller -- 2,000 to 2,300 square feet.

Lindemann said he was willing to sacrifice a few finishes and a larger lot for a home he can afford, and he is putting in tile and upgrades himself.

"Just kind of sweat equity kind of stuff stuff that I could do myself," said Lindemann, who is now looking forward to the future in their new home. "We definitely bought the house to start a family and have kids of our own."