Smaller New Homes Remain Trend Beyond the Recession

By: Craig D. Antonelli, President of Antonelli Construction, LLC and

Chairman of the Rochester Homebuilders Association

It wasn’t long ago when McMansions were becoming the norm in suburban neighborhoods across the country.  However, when the recession hit, the average size of newly-built homes started to decrease from 2,268 square feet in 2006 to 2,100 square feet in 2009.  In the recent past, average new home sizes increased noticeably but according to a recent study by economists at the National Association of Home Builders, as we come out of the recession, the size of new homes will not automatically increase to the previously high levels and may not go back to a larger footprint.

A new housing market is emerging, and even as the country begins to climb out of the tough economic times, there is an expectation of the popularity of smaller homes to persist.  Builders are responding to the new home buyer mindset.  This new mindset has been shaped by the changing building technology, the changing family sizes and a weaker national economy. This new way of thinking is transforming the final product Home Builders deliver to the homeowner.

The following are factors that are likely contributing to this new trend of smaller homes.

First, more and more Americans are becoming focused on energy conservation.  A smaller efficient new home will cost the homeowner less to heat and cool than a larger home with similar energy-efficient features, and will leave a smaller carbon footprint.

Second, family household size has been decreasing over the years. In 1960 the average household was 3.3 people per household, while in 2009 the family household was reduced to 2.63 people per household.  Because of the reduction, families typically haven’t had a need to build homes with extra rooms or bedrooms.  In addition, empty nesters have downsized their lifestyle and have little use for oversized bedrooms and any additional extraneous rooms in their homes.

Finally, around one-third of new homes are typically purchased by first-time buyers, who can often only afford smaller homes.  For the other two thirds of home built, it’s the economy….which effects new home buyers’ decisions.  The cost-conscious home buyers are choosing to include more high-quality features in their new homes rather than add square footage.   For example, families are choosing to have high-end efficient appliances, exotic hardwoods, quality cabinets and granite countertops in their kitchen rather than adding the extra room in the home that they would only use “once or twice a year”.

The bottom line is this:  Whatever your preference — size, features, price, or something else — new home builders today are providing homes that will appeal to a wide range of tastes and budgets, with more customization choices for your lifestyle than ever before.  The “perfect” home for your family may be an award winning “showstopper” or it may be something very different, but with all the choices available, extremely low mortgage rates and affordable house prices…Now is a good time to buy.

For more information on why now is a good time to buy, contact The Rochester Home Builders Association at www.rochesterhomebuilders.com

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