Eye On Housing
An expected impact of the virus crisis is a need for more residential space, as people use homes for more purposes including work. Recent data confirms this impact on the market continues to occur.
According to third quarter 2021 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area increased to 2,337 square feet. Average (mean) square footage for new single-family homes increased to 2,541.
Since Great Recession lows (and on a one-year moving average basis), the average size of new single-family homes is now 6.2% higher at 2,518 square feet, while the median size is 9.3% higher at 2,296 square feet.
Home size rose from 2009 to 2015 as entry-level new construction was constrained. Home size declined between 2016 and 2020 as more starter homes were developed. Going forward we expect home size to increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the post-Covid-19 environment.
Getting bigger, annoyingly so. There seems to be a trend of disregard to neighbor planning snd aesthetics that is disturbing. Big homes in planned communities with supporting infrastructure is fine, but maxing out sq ft in small neighborhoods with limited parking & narrow streets appeases the wealthy buyers and is not solving housing shortages. Unfortunately city planners are throwing the baby out with the bath water!
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Murica…don’t just have what you need; have more, bigger, better, everything.