Newly built, single-family homes in the U.S. finally are getting smaller, a sign that a long-awaited shift of builders to slightly smaller, more affordable homes likely has started. Commerce Department data shows the median size of a single-family home built in the third quarter was 2,414 square feet, down 2.3% from the second quarter measure of 2,472. The third-quarter figure is the lowest since 2012’s fourth quarter, and it is the second consecutive quarterly decline following a 0.2% drop in this year’s second quarter. And early signs are emerging that entry-level buyers are coming back. Construction starts for single-family homes increased by 4.2% from a year earlier. The most likely source for that greater volume of starts is entry-level buyers. The median new-home size now stands 3% below its recent high of 2,491 square feet in the third quarter of 2013. [Read this article]
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