Military homebuyers make up a significant proportion of people that are homebuying age. Active duty military and reservists account for over 2.2 million of the country’s population. There are, an additional, 19 million veterans nationwide.
Despite these large numbers, military homebuyers are an untapped demographic in real estate. They are left to navigate a market that is not inherently designed to cater to their needs. Builders across America are closing the gap by constructing the homes our military servicemembers and veterans need.
Homeownership is Beneficial to Our Military & Veterans
There is great incentive for military servicemembers to enter the housing market.
- Homeownership is a big step toward financial wellness and independence. The journey up the property ladder creates great financial leverage for homeowners.
- Mortgage payments are often lower than the cost to rent an equivalent property.
- Fixed rate mortgages provide more stability to veterans, as they don’t have to worry about increasing rent on an annual lease.
- Low VA loan rates coupled with a no down payment option makes owning a home affordable for servicemembers.
- Rising home values allow military members to make a substantial profit on properties when they are ready to sell at the end of their enlistment.
Military Homebuyers Are Struggling to Find Adequate Housing in the Current Market
Current market conditions have made it difficult for military homebuyers to purchase a home. Lack of inventory has made it increasingly challenging to find a home to purchases during a house hunting trip. Many cannot compete in bidding wars, due to sellers misconceptions about VA financing.
Military families are on a time crunch, they need to find the right house, quickly, and cannot spend months house hunting. The transfer season lines up with the height of the market in the spring and summer further reducing available listings. Construction of new homes helps alleviate these constraints.
New Construction Homes Serve Active Duty Military & Veteran Homebuyers
New construction homes are the solution to military homebuyer needs. In fact, they prefer working with builders and their sales staff. They provide the opportunity to streamline the homebuying process so servicemembers can plan their home purchase months in advance of their move.
Newly constructed neighborhoods offer come with a built-in community for homeowners who move in at the same time. New construction homes are move in ready and provide and peace of mind. Military families don’t need to worry about major repairs while they are away on deployment. They can easily settle into their new home while adjusting to their new surroundings.
Where Military Members Are Buying
According to a study done by Forbes, new VA purchase loans increased by 11.4% in 2020. The following are the top 20 counties for VA home loan purchases in 2020:
- Maricopa, AZ
- Bexar, TX
- El Paso, CO
- San Diego, CA
- Clark, NV
- Riverside, CA
- Bell, TX
- Onslow, NC
- Hillsborough, FL
- Harris, TX
- Tarrant, TX
- Montgomery, TN
- Duval, FL
- Pierce County, WA
- Cumberland, NC
- Virginia Beach City, VA
- Pima, AZ
- Okaloosa, FL
- El Paso, TX
- Honolulu, HI
Giving Back to Those Who Serve
There are several ways builders can enhance their homebuying experience.
- Build homes that are within a reasonable commuting distance to various military installments.
- Offer special incentives for military servicemembers, such as discounts on closing costs, or extra upgrade credits.
- Work with preferred lenders that are well versed in the VA loan program.
Builders around the country have the unique opportunity to serve our military and veterans and provide the housing that they need and deserve.