New home sizes continue to shrink

Americans seem to be more interested in smaller homes at the start of 2017 as the median and average square footage of new builds continues to decrease, according to a note from Robert Dietz for the National Association of Home Builders.

During the housing recovery, builders focused on higher end homes, however that is now beginning to change. The entry-level market continues to expand, including an increasing interest in townhomes, and new home sizes continue to shrink.

Median single-family square floor area decreased to 2,389 square feet, according to first-quarter data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis. This is down from 2,440 square feet last quarter and 2,465 square feet last year.

Similarly, the average square footage also decreased slightly from 2,652 square feet in the fourth quarter and 2,658 square feet last year to 2,628 square feet.

Read the source article at U.S. Housing Finance News