Getting Cozy
2016 marked the end of an era that began in 2009, when the size of newly built homes increased year after year. In 2015, the typical new home had 2,689 square feet, but in 2016, that number dropped by about 50 square feet to 2,634, according to the U.S. Census Bureau.
The National Association of Home Builders says it’s a sign the construction industry is preparing for first-time homebuyers and millennials, who are after smaller, more affordable homes.
Homebuyers who prefer a specific house size
21% 1,600-1,900 square feet
22% 2,000-2,499 square feet
29% >2,500 square feet
28% <1,600 square feet
Source: The National Association of Home Builders
There’s still a discrepancy, however, between what these buyers want and new homes coming up on the market, particularly on the smaller end. While nearly 30 percent of buyers want a home under 1,600 square feet, only 13 percent of new homes hit that mark. On the other end, while only 15 percent of buyers want a home greater than 3,000 square feet, 32 percent of new homes are that size or larger. Other features that buyers want include the following:
- 44 percent want homes with more than two bathrooms (31 percent of existing homes have them, while 68 percent of new homes offer more than two bathrooms).
- 45 percent of buyers want a completely open kitchen-dining area (51 percent of new homes are built with the kitchen and dining room completely open).
- 32 percent of buyers want a home with a completely open kitchen-family room (54 percent of new homes are built with a completely open kitchen-family room arrangement).
