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The Benefits of Buying a Custom New Construction Home in the Coachella Valley

Coachella Valley

A custom home gives buyers more options when it comes to the layout, finishes, and accessibility of their future home. Generally speaking, custom homes are homes that have been newly-built on land. These homes tend to be larger and more expensive properties located in relatively low-density areas, making them more desirable than the average new construction home.

And when it comes to location, few places can match the beauty and exclusivity of the California desert. For buyers who are in the market for new homes, Coachella Valley is more than worth considering.

Table of Contents

  • A robust market for custom homes
  • Why buy a custom home in Coachella Valley, CA
  • The benefits of buying a custom home in Coachella Valley
  • Advice for buying custom homes

A robust market for custom homes

Custom built homes are in high demand in the United States. According to Census Data from the Quarterly Starts and Completions by Purpose and Design, the custom home building industry saw a year-over-years gain with 46,000 total custom home building starts in the first quarter of 2022, up 28% from Q1 2021. Custom home building starts totaled 205,000 units over the past four quarters, up 13.9% from the previous four-quarter total.

Despite market share decline caused by an increase in spec building during the pandemic, the market share for custom homes is increasing. The market share of total single-family starts for custom home building increased 18% on a one-year moving average in 2022.

Although higher material costs and interest rates are expected to affect housing demand, the shift in the demographics and geography of new home construction is predicted to increase the market share of custom home building in the coming years. Changes in housing preferences due to the pandemic and the flexibility of remote work are expected to boost the demand for custom homes.

Why buy a custom home in Coachella Valley, CA

When it comes to new homes, Coachella Valley is one of the best locations due to the quality of the design and construction of homes in the area. From Modern-style mansions that blend seamlessly into the desert landscape to Mediterranean homes with Old World charm, the choices are endless when it comes to custom homes.

Coachella Valley is also one of the most desirable places to live in California. Known for boho chic and effortless elegance, the Valley is synonymous with music, architecture, and luxury real estate. Long before the popularity of the annual Coachella Valley Music and Arts Festival, the Valley was a popular weekend getaway for Old Hollywood’s elite, with stars and film producers flocking to Palm Springs in-between takes. Many bought vacation homes in the area, where they enjoyed privacy and admired the Valley’s scenic landscape.

Custom homes still an attractive option despite low supply and fierce competition

Custom homes

The Coachella Valley is a white-hot housing market as the pandemic has caused Americans to flee crowded cities in favor of vacation communities with open spaces and larger homes. Indeed, the pandemic ushered in a second wave of buyers who are willing to pay a premium for the luxury desert lifestyle. The Coachella Music and Arts Festival’s return to in-person concerts has also renewed interest in the area, bringing back flocks of music fans and major brands advertising at the event.

According to real estate experts, home sales revenue doubled over the past two years with a record high of approximately $28 million per month. 40% of all residences sold in the Coachella Valley in 2021 were second homes.

The real estate industry is also one of the Valley’s top employers, making an impact in the local economy in the form of high salaries and sales commissions, which are largely spent in turn on local goods and services. The real estate industry has helped create jobs and generate revenue in pool construction, landscaping, and renovations and remodeling.

The buying frenzy has depleted supply and pushed up prices for available homes. It has also created intense competition among eager buyers who are willing to pay cash, shoulder sellers’ closing costs, and in some cases, skip home inspections and appraisals, to close the deal.

Luxury home listings are decreasing as with other real estate categories. The housing market typically had 250 luxury homes available for sale on average. That number dwindled to 124 in 2020 and to 32 in 2021. Low supply is driving prices and limiting buyers’ choices in the luxury market.

Although new home construction in the Valley doubled over the past few years with 1,890 homes built in 2021, issues with the supply chain, labor shortages, and soaring prices for home building materials have hampered the pace of construction. Real estate experts believe that new home construction will not be able to supply needed inventory and that home prices stay high amidst limited inventory although price increases are expected to level off.

Seven of the nine cities in the Coachella Valley are selling homes at premium prices. Home sales often go over asking prices with multiple bidders. All nine cities recorded average price gains of more than 27% in the past year. The median price for attached homes is up 22.4%, going from $329,000 in 2020 to $402,900 in 2021 while the median price for single-family homes is up 18.2%, going from $520,000 in 2020 to $615,000 in 2021.

When it comes to the luxury market, the average price for a 4,500-square-foot property in one of the top country clubs in the Coachella Valley has increased 18.2% in the past year, going from $2.3 million in December 2020 to $2.7 million in December 2021. Home sales are 37% higher compared to pre-pandemic levels with 33 units sold per month on average. Thunderbird Heights in Rancho Mirage led home sales in the Valley, up 60.3% over the previous year.

The benefits of buying a custom home in Coachella Valley

buying a custom home

  1. Lifestyle – The natural beauty and leisurely lifestyle of the Coachella Valley make it an attractive option for affluent and upwardly mobile buyers looking for vacation or retirement homes. With access to golf clubs, luxury spas, upscale retail, and world-class dining, those who live in the Valley enjoy the finer things in life. Living here also brings them close to exclusive events like the Coachella Music and Arts Festival, Palm Springs International Film Festival, Modernism Week, BNP Paribas Open, The American Express, and more.
  2. Functionality Clients can maximize the functionality of their home. Custom homes typically have open and flexible spaces or layouts with clear designations for cooking, dining, and work, creating the ideal home environment. With an exclusive selection of new homes, Coachella Valley real estate is known for blurring the line between indoor and outdoor living. The finest custom homes in the area have flowing spaces and oversized windows that allow for plenty of natural light and sweeping views. This lets homeowners revel in the breathtaking beauty of the California desert in the comfort and privacy of their own home.
  3. Future-proofing – A custom home can accommodate the needs of a growing family or an upwardly mobile individual. With modern designs and layouts, clients can choose a custom home based on how they envision their future, whether they plan to have children, adopt pets, or invite extended family to live with them.
  4. Well-designed spaces – The ability to entertain friends and family can have a tremendous impact on a homeowner’s quality of life. Clients can indulge their passion for hosting guests with a custom home in the Valley. Many custom homes in the area feature spacious patios with fire pits or in-ground pools that create the perfect stage for entertaining.
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  6. Custom features – New homes in Coachella Valley run the gamut from minimalist designs with elegant simplicity to elaborate and heavily customized layouts that allow clients to showcase their hobbies and collections. The main appeal of custom homes is that clients with niche hobbies such as wine, cars, films, art, and woodworking will find specialized features that accommodate their passions and interests. Car collectors can showcase their automobiles with a showroom-type garage while wine lovers can host private wine tastings in their own cellar.
  7. Energy efficiency – Clients can always expect a new construction home to have modern energy efficient features. Some custom homes are built with sustainable materials or have specific energy and water efficient components to help homeowners minimize their impact on the environment.
  8. Smart home integration – Many new construction homes feature some form of smart technology. However, a custom home has smart home integrations that elevate day-to-day living. From video doorbells and digital locks to no touch faucets and multi-room audio systems, clients can choose smart home features to enhance safety, convenience, and entertainment.
  9. Pride and satisfaction – Nothing comes close to the pride of owning a home that one has designed and built to their standards. Unlike cookie cutter homes, custom homes are prized for their quality and timelessness.
  10. Custom home neighborhoods

    When it comes to custom built new homes, Coachella Valley offers access to prestigious neighborhoods with quality workmanship and first-rate amenities. These neighborhoods include:

    • The Hideaway Golf Club
    • The Madison Club
    • Bighorn Golf Club
    • Mirada Estates

    Advice for buying custom homes

    Advice for buying custom homes

    Tour models and visit showrooms. When looking at custom homes, buyers can tour model homes or visit showrooms to see what’s on offer. Model tours give buyers an idea of what a particular model or design will look like post-construction while showrooms often have scale models and virtual renditions of custom homes.

    Choose the right community. With so many gated communities in the Coachella Valley, choosing is truly the hard part. Whether they’re purchasing a vacation home or a permanent residence, buyers should get to know the neighborhood before committing to a home purchase. This will help them determine whether or not the community is a good fit for their lifestyle and personal values.

    It’s also worth inquiring about any future developments that could possibly affect one’s usage or enjoyment of the home. Is there a new road or building being planned in the area? Looking ahead will help buyers make sound decisions for the long-term.

    Buyers should inquire about any adjustments to fees and charges related to homeownership. Do the neighbors expect their homeowners’ association (HOA) fees to increase over the next few months or next year? It is customary for HOAs to raise fees to account for inflation and maintain the community’s character. Asking about any adjustments will help buyers anticipate their expenditure for the foreseeable future.

    Ask for a home inspection. Buyers who find themselves in the middle of a heated bidding war may consider waiving the home inspection to get the seller’s attention. But they should also keep in mind that the home inspection is an important part of the home buying process. A home inspection will help buyers uncover major defects in the home, if there are any. Buyers may also need special inspections for swimming pools, tennis courts, and larger properties.

    Secure financing. It’s not uncommon for buyers to offer to pay cash to entice buyers to accept their office. However, this is only one option. Buyers can also secure a jumbo loan, or a loan that exceeds conventional conforming limits, to buy a larger and more luxurious property in the Coachella Valley.

    Why work with an agent when buying new homes in Coachella ValleyBuild your dream home in Coachella Valley

    If you’re ready to find the perfect custom home in the Coachella Valley, you can call me, 760.219.1357. You can also email me here. I have been working with luxury real estate and modern and architectural properties for the last 16 years. With specialized knowledge in new construction homes, golf properties, and gated communities, I assist top-tier clients in the Coachella Valley.

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