Living Less Large: Home Sizes Leveling Off

The median size of new homes, which has been growing over the past two years, likely has peaked for the time being. Bigger homes have dominated the real estate landscape since 2012 due to demand from wealthier, trade-up buyers at a time when entry-level and first-time buyers have been held back by tight underwriting and stagnant income and job growth. Those economic indicators are improving, however, and offering the first hint that buyers at the lower end of the market are stirring again. That could mean a return of smaller homes, although builders and economists do not expect any drop in median size to be a drastic one since the comeback of entry-level buyers will be gradual. | Read More