According to the Census Bureau’s Survey of Construction, the share of new homes started with 5,000 square feet or more of living space stood at 3.1% in 2016, down from 3.9 percent in 2015. The total number of 5,000+ square-foot homes started in absolute terms was 24,000, down from 28,000 in 2015.
In 2015, the number of 5,000+ square feet homes started was the highest since 2007, and their share of the new market was the highest since the inception of the series in 1999. In the boom year of 2006, 3.0% or 45,000 new homes started were 5,000 square feet or larger. In 2007, the share of new homes this size was 3.6%, yet the total number that year fell to 37,000. In 2008, only 20,000 such homes were started, or 3.2% of the total. From 2009 to 2012, the number of these large homes started, remained well under 20,000 a year and accounted for less than 3% of all new single-family construction during this period. The 3.1 percent share of 5,000+ square foot homes in 2016 is the lowest since 2012.
A previous post discussed a recent, slight downward trend in the median and average size of new single-family homes evident in quarterly data and attributed this to an expansion in the entry-segment. The post concludes that home size is expected to trend lower.
Further analysis shows that 74% of 5,000+ square feet home started in 2016 have a finished basement, 65% have a 3 or more car garage, and at least 58% have a patio or porch. More than 50% of the homes have 5 bedrooms or more and 70% have 4 bathrooms or more.
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