New Homes: Bigger and Costlier

As mentioned in a recent post – Buyers Looking for Extra Space – the current trend is for larger unit size in new residential construction. In fact, the average size of a new home rose to 2,720 square feet in 2015, a considerable increase over the average of 2,660 in 2014. Nearly 50 percent of the homes built in 2015 had four or more bedrooms and 25 percent of those had garages that would hold three or more vehicles.

However, the National Association of Home Builders reports that average price of a new home in 2015 was $351,000, an increase of $100,000 from 2009.

Given the price of land, construction costs and the difficulty many first-time buyers have securing a loan, much of the this construction is aimed at the high-end or luxury market. Many analysts expected the average home size to fall as first-time buyers entered the market but so far, at least, this hasn’t been the case.

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