New Single-Family Homes Getting Smaller

Filed in Economics by on August 25, 2017 1 Comment

Bigger isn’t always better. In fact, when it comes to the average and median size of new homes, a smaller size could mean a larger number of sales.

The reason is simple: Following the recession, buyers of large, higher-end homes made up a greater proportion of the housing market. But in recent years, demand for smaller, entry-level homes has increased as the economy strengthens.

Between 2009 and 2015, the median square footage of a new single-family home grew from 2,135 to 2,467. But over the last two years, it’s gradually decreased to 2,388 square feet.

NAHB Chief Economist Robert Dietz noted in a recent Eye on Housing post that this rise and fall in home size is consistent with historical patterns in the wake of a recession.

“The recent declines in size indicate that this part of the cycle has ended, and size will trend lower as builders add more entry-level homes into inventory,” Dietz wrote.

Read the full blog post here.

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  1. Vernon says:

    True !
    Great article
    That is why the buyer should be looking into
    Off Site Construction / System Built Dwellings
    True Modular Housing
    Quicker
    Affordable
    High Performance Systems

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