For the past four years, new single-family homes have been shrinking. However, the trend may reverse course as Americans recall the challenges of living at home during the pandemic. A first quarter report by NAHB shows that the median single-family square floor area increased. Instead of seeking smaller, more affordable homes, evidence suggests that homebuyers may want a home with an office, gym, or other functional spaces so they can continue life without as many disruptions if a stay-at-home order comes into play.
New single-family home size has trended lower over the last four years as builders sought to add additional entry-level supply to an inventory-starved housing market. However, the coronavirus and the recession of 2020 potentially reset those trends, as evidence grows that households will seek more space for home offices, home gyms, and other purposes.
According to first quarter 2020 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area ticked up to 2,291 square feet. Average (mean) square footage for new single-family homes was effectively unchanged at 2,506 square feet.
Related Stories
Single-Family Homes
The Size of the Average Single-Family Home Is Shrinking
As borrowing costs and home prices continue to reach new highs, new single-family homes are getting smaller
New-Construction Projects
Housing Starts Rose in April, but Are Still Down Significantly From a Year Ago
Single-family housing starts posted a small but promising increase in April, but builders are still confronting a major supply deficit that's been over a decade in the making
Affordability
These Are the Most Affordable Alternatives to Single-Family Homes
In a high-cost housing market, manufactured homes and vacant lots offer buyers an affordable alternative to single-family home purchases