New Homes Shrink As Builders Focus On Entry-Level Homes

By Peter Fabris, Contributing Editor | December 1, 2016

Homebuilders have shifted their focus toward entry-level homes and townhouses and away from higher-end properties in recent months. As a result, the size of new single-family homes continued to shrink in the third quarter of 2016, according to a recent analysis of Census Bureau data by the National Association of Home Builders. Average square footage for new single-family homes dropped to 2,602 sf in the third quarter from 2,620 sf in the second quarter and 2,658 sf in the first quarter. It was also down from 2,649 sf in the third quarter of 2015.

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