Home sizes shrink, buyers lean toward single story homes
New home construction trends
American homes are decreasing in size as shown in a recent U.S. Census Bureau report revealing the average size of new single-family homes shrank to 2,438 square feet, nearly 100 square feet smaller than its peak in 2007. Home sizes have risen for decades, but given the current economy, even number of bedrooms and bathrooms in homes completed in 2009 dropped when compared to previous years.
“We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980s,” said the National Association of Home Builders Chief Economist David Crowe. “The decline of the early 1980s turned out to be temporary, but this time 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.”
Crowe also pointed out that the average square footage of new single-family homes completed is only one measure of new home size. “The Census Bureau also reports average square footage in a quarterly release based on starts rather than completions, which is sometimes useful when market conditions are changing rapidly,” he said.
Although sizes differ between geographical regions, the national average is showing a return to the smaller, single story home scenario of the past. Why do you think home sizes are shrinking? Is it a return to a more economical tradition or is it a shift toward more urban living?
CC Licensed image courtesy of jstephenconn via Flickr.com.
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This article published on Monday, June 14th, 2010 at 10:50 pm | Contact the editor
Topics: Real Estate
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- Bridget Magnus » Odds and Ends:
[...] The average size of new homes is shrinking, down to 2438 square feet. There is also a trend towards …. I’ve already noticed a sharp price per square foot premium on single story homes here in the Las Vegas Valley, and I expect the trend to remain in place as Baby Boomers get older and start to require homes that can be made disability friendly. [...]
- New Home Construction Trend: Shrinking Home Sizes « Fred Real Estate Group:
[...] *Read the full article here. [...]
- Geoffrey Gove:
RT @C21RealEstate: Home sizes shrink, buyers lean toward single story homes http://bit.ly/9Acm8l (@agentgenius)
- Honey, I Shrunk The House | Real Estate Industry Blog:
[...] reported this week, the average home size has officially shrank to 2,438 square feet, which, if you ask me, [...]
- AgentGenius:
#agnow [...] reported this week, the average home size has officially shrank to 2,438 square feet, which, if you as… http://bit.ly/cTJcIC
- Mark Brian:
Home sizes shrink, buyers lean toward single story homes http://ht.ly/1YKyo
- AgentGenius:
#agnow I think people are becoming more cautious of what they spend – and in turn, builders are adapting. http://bit.ly/cTJcIC
- AgentGenius:
#agnow I am working with a builder now and we are debating whether or not to remove the formal dining room from the… http://bit.ly/cTJcIC
- ericaramus:
@agentgenius Home sizes shrink, buyers lean toward single story homes http://bit.ly/9AVnQE
- Tyler Webb:
That old paradigm shift rearing its head once again->Home sizes shrink, buyers lean toward single story homes http://bit.ly/9AVnQE
- Everything is bigger in America – debt, college football, & home sizes:
[...] a long way to go until our size or efficiency matches those of other countries abroad.This spring, we reported that the average American home shrank to 2,438 square feet, nearly 100 square feet smaller than its [...]
- AgentGenius:
#agnow [...] a long way to go until our size or efficiency matches those of other countries abroad.This spring, we … http://bit.ly/cTJcIC
- ERWWNewConsumer:
For first time in decades, U.S. home sizes are shrinking–further evidence of the move toward rightsizing http://fb.me/CLhNOhgr
Benn Rosales
Conal Campbell
Elijah May
Lani Rosales
Tara Steele
Marti Trewe
Charlene Jimenez
This is similar to what my wife and I have always wanted. For us we don’t see a need to have a Living Room and a Family Room. One of the rooms doesn’t really get used, which seems like a waste of space. We’re also not interested in a Formal Dinning Room. We’re pretty basic for the main part of the house. Living Room, Informal Eating Area and Kitchen with Bedrooms of course. Although, I would like to have a seperate room for an office.
The explanation provided by David Crowe is right on the money. These days homeowners have to be practical. Comfortable living does not rely heavily on how big your crib is. For as long as you can move around with relative ease and every space in the house is optimized, then that would be just fine…
I think people are becoming more cautious of what they spend – and in turn, builders are adapting.
I am working with a builder now and we are debating whether or not to remove the formal dining room from the house plan, to add a 4th bedroom, which will be downstairs on the 1st floor with its own bathroom.
Many people WANT a dining room to put their big table in, but how many times do you use it? How many times do you go into someone’s house and the dining room table is filled with junk because nobody sits there.