By Robert Dietz | Builder
One defining market dynamic of the post-recession period has been the shift to larger, more expensive new homes. This marked a rebound after the housing downturn. Due to reduced housing demand and policy effects from the first-time homebuyer tax credit, average new-home size fell during the Great Recession. Home size reached a low point at the start of 2010.
On a one-year moving average basis, average new-home size was approximately 2,370 square feet for the first quarter of 2010, according to NAHB analysis of Census Bureau data. After the start of 2010, however, home size grew as homebuilders increasingly shifted to larger, more expensive homes. This made economic sense, particularly during a period of rising regulatory burdens and costs, as demand was more robust at the high end of the market during this period.
