Bigger is better again in the new home market

New homes are getting bigger
Is bigger better? The recent new home market appears to indicate so.

For years we saw new homes increase in size due to demand. In fact, even dating back to the 1980’s we saw the term “McMansion” enter the vocabulary. (McMansion is a pejorative term for a large “mass-produced” dwelling marketed to the upper middle class mainly in the United States.) For quite some time Americans’ appetite for larger homes seemed to grow stronger by the year. However, this began to change several years ago as more Americans became more environmentally conscious. All of a sudden, many Americans become more cognizant of their carbon footprint and this led to smaller, more energy-efficient homes.

The pandemic effect

As we know all too well, the COVID-19 pandemic reached the U.S. in 2020 (or possibly slightly earlier). With many parts of the economy shutting down, it was largely unknown what would happen in the real estate market. Interestingly, as more employers asked their employees to work from home due to social distancing measures, we immediately saw home search borders lifted across the country. All of a sudden Americans could live anywhere with internet access. In addition, the more time being spent in the home also led to the desire for larger homes. As a result, the average size of a new home in the U.S. grew by 6.2% in Q3 2021.

According to Census Bureau data reported by the National Association of Home Builders (NAHB), the median single-family square floor area increased to 2,337 square feet as of Q3 2021 while the average (mean) square footage of new single-family homes rose to 2,541.

Summary

Going forward, we expect the trend for larger homes to continue. With the home now having increased roles such as for work and/or study, additional space will continue to be desired. Although home prices have increased significantly, we have seen starter home prices grow at a higher rate. Since 2016, starter homes have grown by 64% whereas larger homes have grown by 43%.

If you are considering listing your home for sale, you may want to consider highlighting the multi-functional aspect of some of the rooms in the house. Of course, if adding a bedroom or extra square footage is an option, this may also garner more interest from buyers looking for additional space.

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

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