New single-family homes continue to shrink
New single-family homes are continuing to decrease in size, according to the National Association of Home Builders (NAHB).
Based on data from the Census Quarterly Starts and Completions by Purpose and Design, along with analysis from the NAHB, new home sizes have downsizing for the past two years. The trend has been driven by builders looking to meet the needs for additional entry-level construction.
Data for the second quarter 2018 points to the median single-family square floor area decreasing to 2,344 square feet while the average square footage for a new single-family home dropped to 2,555 square feet.
In a report published by NAHB Chief Economist Robert Dietz, he explains that the pattern of new homes growing and then shrinking has been driven by the current business cycle due.
Market weakness among first-time homebuyers and supply-side constraints in the building market has lead to downsizing. Looking ahead, Dietz says size will continue to trend lower as builders add more entry-level homes into inventory.
Based on data from the Census Quarterly Starts and Completions by Purpose and Design, along with analysis from the NAHB, new home sizes have downsizing for the past two years. The trend has been driven by builders looking to meet the needs for additional entry-level construction.
Data for the second quarter 2018 points to the median single-family square floor area decreasing to 2,344 square feet while the average square footage for a new single-family home dropped to 2,555 square feet.
In a report published by NAHB Chief Economist Robert Dietz, he explains that the pattern of new homes growing and then shrinking has been driven by the current business cycle due.
Market weakness among first-time homebuyers and supply-side constraints in the building market has lead to downsizing. Looking ahead, Dietz says size will continue to trend lower as builders add more entry-level homes into inventory.