As with many things, the real estate market can be cyclical. Walk into most homes built before the 1980’s and you will quickly realize some differences as compared to more modern homes. Over time, there has certainly been a push for larger homes. In particular, features such as walk-in closets would have never existed years ago but now have become commonplace.
In the 1980’s and 1990’s, the term McMansion was coined for large, mass-produced homes typically found in upper-middle class communities. It seemed as though the “bigger is better” mentality was quite evident in the housing market. This trend continued throughout most of the first two decades into the new millennium as well.
Interestingly, the average home size decreased in 2019. While this was somewhat of a surprising finding, many believe that various demographic factors were at play with more first-time home buyers entering the market. In addition, with more people focusing on reducing their carbon footprint, the trend towards more environmentally-friendly living was taking hold.
The pandemic impact
Needless to say, the entire world changed in early 2020. As the COVID-19 pandemic spread around the globe, essentially all aspects of life were deeply impacted. This certainly included real estate as well. All of a sudden, there was an insatiable appetite for more space offered by larger homes typically found in suburban areas. As a majority of the workforce stopped commuting to the office and instead were working from home, this sparked heavy demand for more space. This resulted in a tremendous shift from multi-family housing in big cities to single-family homes in suburban areas.
Since Great Recession lows (and on a one-year moving average basis), the average size of new single-family homes is now 6.3% higher at 2,537 square feet, while the median size is 10% higher at 2,312 square feet. Going forward, it is expected that home size will continue to increase as the various uses and roles of the home also increase.
Summary
The pandemic has certainly had lasting effects on many areas of life. When it comes to housing, a home-based office is quickly becoming a necessity for any home. Fortunately, advances in building methods and materials will still allow for maximum energy-efficiency. However, inflationary pressures, supply chain constraints, and soaring fuel prices will certainly provide significant headwinds for the new home construction market.
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!
