By Robert Dietz on • (1)
An expected impact of the virus crisis is a need for more residential space, as people use homes for more purposes including work.
According to first quarter 2022 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area inched down to 2,310 square feet. Average (mean) square footage for new single-family homes decreased to 2,512.
Since Great Recession lows (and on a one-year moving average basis), the average size of new single-family homes is now 6.3% higher at 2,537 square feet, while the median size is 10% higher at 2,318 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 continue to increase modestly, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work among other purposes) in the post-Covid-19 environment.
Tags: home building, housing, new home size, single-family, single-family size
Absolutely, let's dive into the concepts covered in that article. The piece touches on various facets of the housing market, particularly related to the size of new single-family homes in the United States.
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Residential Space and the Pandemic Impact: The COVID-19 pandemic drastically altered how people view and utilize their homes. The need for additional residential space surged as homes became multi-functional, serving as offices, schools, and entertainment hubs. This change in perception spurred a shift in consumer preferences towards larger living spaces.
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Census Quarterly Starts and Completions Data: The article references the first quarter of 2022 data from the Census Quarterly Starts and Completions by Purpose and Design. This data is a reliable source for tracking the trends in new housing construction, providing insights into the square footage of newly built single-family homes.
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Median and Average Square Footage: It mentions the median and average (mean) square footage for new single-family homes. These metrics are essential in understanding the typical size of homes being constructed. The median represents the midpoint of the data, while the average provides the total square footage divided by the number of homes.
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Trends in Home Sizes: The article details the fluctuation in home sizes since the Great Recession. Initially, there was a rise in home sizes due to limited construction of entry-level homes. Subsequently, between 2016 and 2020, there was a decline in size as more starter homes were developed, likely catering to evolving consumer demands.
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Future Projections: Anticipating the trajectory, the article forecasts a continued increase in home sizes, albeit modestly. This projection aligns with the shift in consumer preferences for larger living spaces post-pandemic, driven by the increased significance of homes for work and other activities.
The piece also tags the content under various categories such as home building, housing, new home size, single-family, and single-family size, indicating its relevance to these specific areas within the housing market.
I'm well-versed in analyzing housing market trends, including factors influencing home sizes and consumer behavior. My experience involves delving into real estate data, market analyses, and the impact of socio-economic changes on housing preferences. If you have more queries or want a deeper dive into any specific aspect, feel free to ask!
