MHProNews has learned from constuctiondive that the median size of new U. S. single-family homes fell nearly three percent from Q1 2016 to Q2 2016, slipping from 2,465 sq ft to 2,392 sq ft. On a one-year moving average, however, median home size has actually risen 16 percent, according to the National Association of Home Builders (NAHB). The quarter-to-quarter decline may indicate an increase in (smaller) starter home inventory. New multifamily rental apartment sizes did not experience the same fluctuation in size.
The NAHB gleaned from the Census Bureau’s Survey of Construction that the median size of a new single-family lot is 8,600 sq ft, which is a record low, although regional differences may account for the drop: In New England, the median size of a lot is one-half acre, while home builders in the Pacific region worked with less that 0.15 acres in 50 percent of lot inventory.
Additionally, a May NAHB report indicates that building lot availability is at an all-time low, which could either drive the price up, or prompt developers to build on smaller lots.
A June Wall Street Journal report reveals median single-family home size has increased in the U. S. eleven percent in the last ten years, and 61 percent larger since 1975. Since the housing crash and recession, mainly those not so affected by the downturn at the upper end were building homes, so builders focused their energies on more luxury homes.
A May Zillow Real Estate Market Report reveals starter home inventory has fallen nine percent year-over-year, pushing prices in that market up eight percent year-over-year, which is twice the rate of the overall market. Further, the shortage of entry level inventory has led to a decrease in the number of first-time home buyers. ##
(Image credit:theatlanticcities–home planning)
Article submitted by Matthew J Silver to Daily Business News-MHProNews.