New Single-Family Home Size Rises
The size of a typical new single-family home rose in the second quarter of 2013 continuing a post-recession trend. The recent increase in size is likely due to an atypical mix of buyers.
According to data from the Census the Quarterly Starts and Completions by Purpose and Design survey, the average and median size of single-family homes started during the second quarter actually fell somewhat from the first quarter. The average single-family square footage fell from 2,689 to 2,647, while the median declined from 2,472 to 2,441.
However, on a less volatile one-year moving average, the size of new single-family homes continued their rising trend. Since cycle lows and on a moving average basis, the average size has increased almost 10 percent to 2,599, while the median size has increased more than 13 percent to 2,382.
As noted in NAHB’s analysis of 2012 Census construction data, the recent rise in single-family home sizes is consistent with the historical pattern coming out of recessions. Home sizes fall into the recession as some homebuyer cut back, and then sizes rise as high-end homebuyers, who face fewer credit constraints, return to the housing market in relatively greater proportions.
View this original post on the NAHB blog, Eye on Housing.
Reprinted with permission from RISMedia. ©2013. All rights reserved.