New Homes Getting Smaller
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It’s a trend that has been anecdotally known since the beginning of 2009, but the National Association of Home Builders is backing up our hunch with census data.
“After increasing continually for nearly three decades, the average size of single-family homes completed in the United States peaked at 2,521 square feet in 2007. It was essentially flat in 2008, then dropped in 2009, so that new single-family homes were almost 100 square feet smaller in 2009 than in 2007.”
This trend happened once before in the recession of the early 1980s. While that size back was temporary, the NAHB expects the recent smaller home phenomenon to continue.
“The decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home. Many of these tendencies are likely to persist and continue affecting the new home market for an extended period.”
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In our extensive demographic research for various projects around the St. Louis area, we have found that home buyers, while desiring less square footage, are requesting higher finish levels and more amenities to counteract fewer bedrooms and bathrooms.
