The median size of new single-family homes in 2021 was 10% higher than the average home size during the Great Recession, and over one third (36%) of Millennials are in favor of even larger homes, LBM Journal reports. As home preferences change following lockdown ordinances and remote work flexibility during the pandemic, new homeowners are interested in additional space for exercise rooms and home offices, and home builders are responding with more expansive floor plans.
Though a large share of Millennials will likely flood the housing market throughout 2022, soaring mortgage rates and home prices could keep new buyers glued to the sidelines, while supply chain disruptions and price hikes on building materials continue to pose lasting challenges for builders.
NAHB’s fourth quarter 2021 Housing Trends Report revealed that buyer availability expectations worsened throughout the year across all generations. Only 34% of millennials expected that finding a home would be easier in the months ahead and a majority (67%) of active buyers are spending more than three months looking for a home.
According to recent data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, the median new homes sales price in February was $400,600, up 10.6% compared to a year ago. New home prices have increased as building materials and other development costs have climbed due to supply-chain issues and elevated inflation pressures.