U.S. Census Bureau figures that show more new homes that started construction in 2020 had four bedrooms is a reflection that first-time home buyers were less successful finding a house than buyers who were looking for and able to afford more space.
Nationally, the share of single-family homes started with four bedrooms or more increased from 42.6 percent in 2019 to 45.2 percent in 2020. The Bureau’s 2020 Survey of Construction also showed a reduced share of new homes started with two bedrooms or less (9.7 percent vs 10.5 percent the previous year), which corroborates the lowered presence of first-time homebuyers in the new home market that year.
Unsurprisingly, the 2020 survey, as in prior years, also shows that new homes started with lower square footage area had fewer bedrooms built. For example, in homes less than 1,200 square feet, 83 percent had two bedrooms or less and the remaining homes were all three bedrooms. Similarly, in the next tier of home size, 1,200 to 1,599 square feet, 31 percent of all new homes started had two bedrooms or less, 67 percent had three bedrooms, and the remaining percentage was taken by homes with four bedrooms.