It might be the result of the shrinking family size in the U.S. Or it might be linked to consumers’ budgetary concerns. But there’s a new trend in the country’s housing market – think small.
According to a USA Today report by Stephanie Armour, the median size of new homes has dropped 9% in the past couple of years. National Association of Home Builders data puts the average size of newly built homes at 2,100 square feet. Large builders referenced in the article, including K.B. Home, Pulte, and Toll Bros., all report growing consumer interest in smaller homes. Analysts point to two specific demographics leading this trend:
- First-time home buyers
- Older buyers looking to purchase a second home
While builders indicate that consumers are looking at smaller homes because of budgetary concerns and tighter credit, it could be that some demographics are tired of the mega-mansion trend and want to cut their operating costs across the board.
Either way, this new level of consumer interest will give rise to fresh marketing campaigns by builders and realtors in 2010.[Source: Armour, Stephanie. Builders are focusing on smaller homes, USA Today. December 2009]