Data from the Census Quarterly Starts and Completions by Purpose and Design and National Association of Home Builders (NAHB) analysis found that median single-family square floor area increased from 2,445 in Q4 2014 to 2,521 square feet in Q1 2015. The average square footage for new single-family homes jumped from 2,677 to 2,736 for the first quarter this year.
“The typical size of newly built single-family homes increased at the start of the year,” said Robert Dietz, VP for tax and market analysis for NAHB. “The trend of increasing new home size leveled off in 2014, but new home size increased during the first quarter of 2015 with a decline in the volume of construction. As first-time buyers return to the market, typical home size is expected to trend lower.”
The average size of new single-family homes has increased 13 percent to 2,678 square feet, while the median size has increased 18 percent to 2,477 square feet, since cycle lows and on a one-year moving average basis, according to the analysis.
In the NAHB “Eye on Housing” blog, author, Dietz notes in his post called, “New Single-Family Home Size Increases at the Start of 2015,” that prior to the recession the increase in single-family home size is consistent with the historical pattern coming out of recessions. Before and during the recession typical home size usually drops as homebuyers cut back, and then high-end buyers, with fewer credit issues, return to the market like never before.