Single-Family Home Size Trending Lower

After increasing and leveling off in recent years, new single-family home size continued to trend lower during the third quarter of 2016. This ongoing 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 decline.

According to third quarter 2016 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was effectively unchanged at 2,402 square feet for the third quarter. Average (mean) square footage for new single-family homes fell from 2,620 to 2,602 square feet.

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