New-Home Sizes Start to Level Off

October 15, 2015

The median size of new single-family homes started in 2014 was 2,450 square feet – the second highest since 2009, according to Census Bureau data. However, by the end of 2014 and into 2015, new-home sizes showed signs of flattening, according to an analysis by the National Association of Home Builders.

Coming out of the last recession, home sizes grew – which is a consistent trend when emerging from an economic slump. Home buyers tend to cut back during economic dips and then sizes often rise as high-end buyers – those who tend to face fewer credit constraints – return to the housing market in greater proportions, according to NAHB.

By region, the median new-home size in the West North Central division was 2,270 square feet – the smallest nationwide. On the other hand, the Middle Atlantic division had the largest median size at 2,580 square feet, followed by the South Atlantic division (2,550 square feet), and Mountain division (2,523 square feet).

The share of new single-family homes under 3,000 square feet falls in the range of 64 percent to 75 percent across the country. The regions of the U.S. with the smallest shares of homes under 3,000 square feet were the Middle Atlantic, South Atlantic, and Mountain regions.

Source: “New Single-Family Home Size in 2014: Regional Estimates,” National Association of Home Builders’ Eye on Housng Blog (Oct. 13, 2015)