Buyers Want Larger Homes, Second Quarter Home Construction Delivers

The median and average sizes of a new single-family homes are up, and the National Association of Home Builders says the pandemic-fueled demand for more living space has influenced this trend. The median single-family square floor area increased to 1,297 square feet in the second quarter and the average square footage increased to 2,540. Previous record lows for square footage happened during the Great Recession, and average homes are now 5.5% larger and median-sized homes are 8.5% larger compared to then.

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 increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the post-Covid-19 environment.

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