The United States needs 3.7 million more housing units to meet demand, according to research from Freddie Mac.
As builders work to meet demand, the quality of their product can sometimes suffer — leaving new homeowners with lots of repairs.
A study from LJP Construction Services found new construction can often have issues with exterior weather barriers, structural framing, window/door installations and mechanical, electrical and plumbing systems.
In the United States, there’s an average deficiency rate of 4% for all project types. Single-family homes have an average deficiency rate of 3% nationally, but rates can vary dramatically by state. In California, for example, the deficiency rate is 1.6, while it’s 5% in Florida and 6% in Texas.
For multi-family projects, the average deficiency rate is 6.5% nationally, but again, results vary widely depending on the state. California has a multi-family deficiency rate of 5.8%, while Nevada’s is four times higher, at 23.1%.
It’s important for new homebuyers to exercise caution when considering a newly built home. If buyers find an issue, they should alert the builder quickly, while the work is still under warranty.
“With most new builds, you can report any issues you find to the builders and they will fix it,” said Bradley Mackenzie, a valuer with Stokemont, a London-based surveyor. “Do be warned, though, this often has a time limit, so if you see a problem, write it down and call the property management or builder. It will save you a big headache later down the line.”
The slideshow above highlights Stokemont’s six red flags buyers should look out for when considering a new build.
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