According to the annual data from the Census Bureau’s Survey of Construction (SOC), a total of 29,000 5,000+ square-foot homes were started in 2022, down from 33,000 in 2021. In the boom year of 2006, the number of new 5,000+ square foot homes reached a peak of 45,000. In 2007, the number fell to 37,000. In 2008, only 20,000 such homes were started, and from 2009 to 2012, the number remained well under 20,000 a year, but has been consistently above 20,000 since then.
On a percentage basis, the share of new homes started with 5,000 square feet or more of living space was also down slightly, from 2.90% in 2021 to 2.85% in 2022. In 2015, the 5,000+ square foot home share reached a peak of 3.92%. Since then, the share has fluctuated in a band between 2.50% and 3.10%. The 2022 decline in the share of 5,000+ square foot homes is consistent with the recent downward trend in median and average size of new single-family homes reported elsewhere.
Tabulating the major characteristics of 5,000+ square foot homes started in 2022 shows that 80% have a porch, 70% have a finished basement, 68% have 4 bathrooms or more, 66% have a patio, 67% have a 3-or-more car garage, 56% belong to a community association and 54% have 5 bedrooms or more.
Discover more from Eye On Housing
Subscribe to get the latest posts to your email.
Reduced demand for larger homes could lead to a shift in construction projects towards smaller, more cost-effective designs. This change in market preference could impact the types of construction projects funded through loans, potentially influencing the criteria lenders use to approve construction loans for various property sizes and designs.