NEW SINGLE-FAMILY HOME SIZE DECLINING

After increasing and leveling off in recent years, new single-family home size declined during the second quarter of 2016. This change marks a reversal of the trend that had been in place as builders focused on the higher end of the market during the recovery. As the entry-level market expands, including growth for townhouses, typical new home size is expected to trend lower.

According to second quarter 2016 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area declined from 2,465 in the first quarter to 2,392 square feet for the second. Average (mean) square footage for new single-family homes fell from 2,658 to 2,616 square feet for the second quarter.