New home sizes decreased for the fourth year in a row in 2018. From 2015 to 2018, the median size of new housing decreased from 2,466 sq ft to 2,354 sq ft, according to the Census Bureau. This follows the shift from post-recession where high value homes comprised a greater share of new construction to the current market where more first-time buyers are entering it. While the median and average home sizes are still larger than pre-recession, the decline has been steady over the last four years. Affordability is an important factor.
The reduction in size results in fewer bedrooms.
In response, contractors are building smaller homes and townhouses. Along with reducing the size of many new homes to make them more affordable, builders are moving away from including a 3-car garage and going back to a 2-car garage. The reduction in size results in fewer bedrooms. The National Association of Home Builders’ survey of what home buyers want in 2019 includes these items—smaller home size, smaller garages, townhouses—and more.
Regardless whether home sizes are increasing or decreasing, e2Value keeps up with changes in costs to provide you with fast, cost-effective and accurate replacement cost valuations. Contact us about estimator tools for Mainstreet® homes, high-value homes, mobile manufactured and kit homes, condos and co-ops, commercial and farm & ranch structures.