In the first quarter of 2017, new single-family homes continued the trend of decreasing in size, the National Association of Home Builders reports on its Eye on Housing blog.
Builders have largely focused on the higher end of the market following the recession, but that is showing some signs of changing.
“As the entry-level market expands, including growth for townhomes, typical new home size is expected to decline,” notes Robert Dietz, the NAHB’s chief economist, on the blog.
Median single-family square floor area moved slightly lower in the first quarter of 2017 to 2,389 square feet. The average square footage for new single-family homes fell to 2,628 square feet, according to the NAHB analysis and Census data.
Historically, following recessions, single-family home sizes do increase as high-end home buyers who tend to face fewer credit constraints are the first to return to the housing market in larger numbers.
“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 the inventory,” Dietz notes.
Source: “New Single-Family Home Size Continues to Decline,” National Association of Home Builders’ Eye on Housing blog (May 17, 2017)
