Why Building a Home Addition Might Be Smarter Than Buying in Today’s Market

The Real Estate Catch-22: High Prices, Low Sales

Homebuyers are facing a tough reality right now. The U.S. housing market hit a record median home price of $435,300 in June, even as home sales dropped to their lowest point in nine months. It’s a confusing landscape: prices are soaring, yet fewer people are buying. What’s going on?

The answer lies in a housing market split into “haves” and “have-nots.” Those with significant equity or the ability to pay cash are still making moves, while first-time and middle-income buyers are finding themselves priced out. With mortgage rates stuck near 6.74% and housing inventory still lower than pre-pandemic levels, many people simply can’t make the numbers work.

To make things even trickier, current homeowners with low-interest mortgages are hesitant to sell. This “lock-in effect” is keeping inventory tight and pushing more buyers to the sidelines. New construction, once seen as a solution, isn’t helping much either. Builders are scaling back due to higher material and labor costs, while smaller new builds often end up in less desirable locations.

A Housing Market Divided: Why Moving May No Longer Make Sense

The current housing market presents a frustrating contradiction. As reported by the National Association of Realtors, the median price for an existing home surged to an all-time high of $435,300 in June—surpassing even last year’s record. Yet, despite these sky-high prices, home sales dropped 2.7% from the previous month, marking a nine-month low. It’s a puzzling situation at first glance, but the divide becomes clearer upon closer inspection.

“Today’s housing market is really haves and have-nots,” explained Jessica Lautz, deputy chief economist at the National Association of Realtors. On one side are affluent, equity-rich homeowners making all-cash moves; on the other are first-time and middle-income buyers stuck on the sidelines. With mortgage rates hovering around 6.74%, the cost of financing a new home has become a deal-breaker for many. “It is pricing out buyers,” Lautz added, noting that even those who do want to sell are reluctant—trapped by low mortgage rates they secured years ago. This “lock-in effect” is keeping much-needed inventory off the market and making it even harder for buyers to find viable options.

With limited choices, rising prices, and financing hurdles mounting, the path forward for many homeowners is clear: stay put and reinvest in the home you already have. Instead of braving the volatile market, a thoughtfully designed home addition or custom remodel offers the opportunity to create the space you need—right where you already live. At Sustainable Design Build, we believe you shouldn’t have to sacrifice your location or lifestyle to have the home you want. Let’s build it together—right where you are.

Why Selling Might Not Be Your Best Move

If you’re a homeowner in the Denver area thinking about upgrading, the current market might have you feeling stuck. You may want more space or a more functional layout—but is it worth trading your low mortgage rate for today’s sky-high prices and borrowing costs?

For many, the answer is no. Selling your home right now means entering a market where competition is fierce at the high end and affordability is a major hurdle at the entry level. Even if you sell for a great price, your buying power is quickly diminished by interest rates and limited inventory. The reality is that moving might not actually get you what you’re looking for.

But here’s the good news: you don’t have to move to get the home you want.

Build On What You Already Have: A Smarter Alternative

This is where a home addition or custom home remodel comes in. Instead of uprooting your life or stretching your finances, you can stay right where you are—and make your current home work even better for you.

At Sustainable Design Build, we help homeowners across the Denver metro area reimagine their spaces through thoughtful, high-quality design-build services. Whether you’re looking to add a spacious new family room, create a modern home office, or finally build out the luxurious primary suite you’ve been dreaming of, we make it possible—on your terms and your timeline.

The benefits go beyond functionality. A well-designed home addition not only improves your daily life, it can significantly increase your home’s value—especially in a market like Denver, where space and quality design are always in demand. With the cost of moving rising and the uncertainties of buying, remodeling your existing home has never looked more appealing.

A Market Stalemate: Why Denver Homeowners Are Staying Put

As the National Association of Realtors reports, the median price for an existing home surged to a record high in June, while sales activity dipped nearly 3%. Jessica Lautz, the association’s deputy chief economist, put it best: “Today’s housing market is really haves and have-nots.” Cash-rich buyers are still active, but rising interest rates and record-high prices are shutting out many would-be homeowners—especially first-time buyers.

For many Denver residents, this dynamic has created a holding pattern. Selling may generate a profit, but moving means stepping into a more expensive, competitive market with higher financing costs. That’s why so many homeowners are now looking inward—reinvesting in their current homes through home additions or custom home remodeling.

Why Now Is the Time to Build a Home Addition or Remodel

Instead of stretching your budget in a turbulent housing market, building a home addition in Denver lets you customize the space you already love. Need more square footage? A brighter, open kitchen? A home office or guest suite? These upgrades are possible—and often more cost-effective—when you expand your current home rather than buy new.

At Sustainable Design Build, we specialize in high-end home remodeling and design-build services tailored to the Denver area. Whether you’re working with an older home or a modern structure, our team brings the vision, planning, and craftsmanship to deliver lasting results. And as an experienced Denver homebuilder, we know how to navigate local codes, materials, and permitting to keep your project on track.

Sustainable Design Build: Your Trusted Denver Homebuilder

With years of experience as a full-service design-build contractor, Sustainable Design Build helps homeowners transform outdated or undersized spaces into custom solutions. We handle everything from additions and pop-tops to full interior remodels, using a collaborative approach to ensure your vision comes to life with efficiency and style.

Our team understands the unique character of Denver neighborhoods—from Highlands to Wash Park—and we craft designs that not only improve your home’s function but boost its long-term value. Whether you’re looking to expand, upgrade, or future-proof your home, we’re here to guide you through every phase.

Ready to Remodel? Let’s Build the Home You’ll Love to Stay In

If you’ve been putting off a move due to market uncertainty, now may be the perfect time to consider your home remodeling options. Skip the stress of buying and selling—invest in the home you already have, and make it everything you need it to be.

Reach out to Sustainable Design Build today to schedule a consultation. Let’s discuss how a thoughtfully planned home addition or remodel can unlock the potential of your space and make your home your forever home.