Size of New Homes in U.S. Shrinks by One Closet

New data from the U.S. Commerce Department suggests home builders are starting to focus more on entry-level homes. Approximately 206,000 homes were under construction in the second quarter and the median size was 2,479 square feet. The median size of new homes was down 40 square feet from the record set in the previous quarter. The National Association of Home Builders (NAHB) estimates that first-time buyers will account for 18 percent of new-home sales this year, up from 16 percent a year ago. First-time buyers tend to purchase smaller, entry-level homes. The median size of newly built homes will gradually level off or decline as more first-time buyers enter the market, according to several economists and builders. “It probably will take the rest of this year and next year before the first-time buyer share is sufficient to affect the median size of all new homes in a sustained manner,” says David Crowe, chief economist for the NAHB. | Read More