This week, the Commerce Department released the results of its annual Characteristics of New Housing report, highlighting a shift in recent years toward larger homes. This article from The Wall Street Journal also reports that as entry-level homebuyers return to the market in the coming years, smaller homes are expected to make a comeback.
Commerce Department data released this week show unprecedented demand in 2014 for homes with four or more bedrooms, three or more bathrooms and three-car garages. The report found that 46% of single-family homes constructed last year had four or more bedrooms, up from 44% in 2013 and from 34% in 2009. Thirty-six percent of the homes built last year had three or more bathrooms, up from 33% in 2013. Meanwhile, two-car garages remain the norm, but they’re receding in popularity – to 62% of homes built last year from 64% in 2013 – while three-car garages increased to 23% from 21%.
Lately, builders and other observers say they’re starting to see life in the entry-level market. Median new-home sizes had declined slightly for three consecutive quarters before taking an upward turn in this year’s first quarter.
Robert Dietz, an economist with the National Association of Home Builders, predicts new-home sizes will plateau this year as builders start constructing a greater number of smaller, less expensive homes.
Homes built with patios rather than porches or decks increased to 20% of new construction in 2014 from 17% in 2013. That reflects the broad preference among builders and buyers for patios that serve as outdoor kitchens, accessible through large sliding doors that often make the patio appear to be part of a home’s living space.
