M300 Blog / December 13th
Are New Homes Getting Smaller?
Over the years, American homes have grown larger. In fact, the typical new home is about 1,000 square feet bigger than it was in 1980. But is the decades-long trend toward bigger homes coming to an end?
Well, according to recent data, it may already have.
That’s because, though the median size of a new single-family home built in 2018 was 2,386 square feet – which is, by no means, a small home – square footage has been declining over the past few years.
Part of the reason for the decline is growing demand for affordable homes.
With the number of homes for sale lower than normal, new home builders are increasingly addressing home buyers’ needs by building smaller, more affordable homes. The other factor is generational.
Millennials have reached the age of the average first-time home buyer and, naturally, have different preferences than their parents. Spacious homes far from the city aren’t as popular with younger buyers, who prefer a smaller, more manageable home closer to work and amenities.
Whatever the reason, the trend toward smaller homes is likely to continue in 2020 and beyond. More here.