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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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."
