New Homes Are Getting Bigger Again
The average single-family home increased in size at the beginning of this year, showing the desire among buyers for more space, according to the National Association of Home Builders. The upsizing trend runs counter to last year, when the increase in home size had leveled off.
The average square footage of new single-family homes rose from 2,677 square feet in the fourth quarter of 2014 to 2,736 square feet for the first three months of this year. The increase came at a time when there was also a decline in the volume of construction.
“Since cycle lows and on a one-year moving average basis, the average size of new single-family homes has increased 13 percent,” according to the NAHB.
The trajectory with home sizes is following typical post-recession patterns, economists note at NAHB’s Eye on Housing blog. Home sizes tend to drop prior to and during recessions as home buyers cut back. But sizes then often rise as high-end home buyers, who tend to face fewer credit constraints, return to the housing market in greater numbers. Once more first-time home buyers return to the market, housing analysts predict that the standard new home size will trend lower.
Source: “New Single-Family Home Size Increases at the Start of 2015,” National Association of Home Builders’ Eye on Housing Blog (