A new article from U.S. News looks at the sizes of new homes being built today, and how the newest data suggests an increasing number of first-time buyers entering the market.
During the post-recession period, builders of new single-family homes have constructed homes for the demand that exists, which has been disproportionately higher-end buyers, who are more likely to have savings for a down payment and the income necessary to support a mortgage. Coming out of the recession, the typical size of a newly built single-family home rose approximately 16 percent to 2,438 square feet. However, that rise in size appears to have ended in 2014. In fact, the typical newly built home in 2014 (2,414 square feet) was smaller than the 2013 estimate (2,460 square feet).
Consequently, the 2014 data suggest a new dynamic may be on the horizon, with increasing numbers of entry-level buyers entering the market. As these prospective buyers appear in greater numbers, expect the median size of newly built homes to fall as the market mix shifts back to a more normal composition of buyers.
