Average New Home Size Has Increased 11% Since 2009

Posted by Patrick Barnard on February 26, 2014 No Comments
Categories : Residential Mortgage

The average size of a new home has increased more than 11% since 2009, data from the U.S. Census Bureau shows.

The data, which was recently presented by the National Association of Home Builders (NAHB) during the International Builders' Show in Las Vegas, shows that the average home size increased from 2,362 square feet in 2009 to 2,679 square feet in 2013.

The share of new homes with at least four bedrooms also increased – rising from 34% in 2009 to 48% last year. In addition, the number of homes with at least three full bathrooms went from 23% in 2010 to 35% in 2013. What's more, the number of homes with three-plus car garages climbed from 16% in 2010 to 22% last year.

The percentage of two-story single-family homes started has also increased – from 51% of all new homes built in 2009 to 60% in 2013.

As homes get bigger, so does the average sales price, rising from $248,000 in 2009 to $318,000 in 2013.

As mentioned in a report posted on NAHB's website, although home sales have decreased in the past year, the average annual income of buyers who qualify for mortgages has increased – from $91,768 in 2005 to $107,607 in 2011. In general, that means buyers who qualify for home loans can afford larger homes than they have in the past.

And, as mentioned in a recent article posted on MortgageOrb, the larger homes become, the more costly they are to maintain – thus creating a new level of risk for investors in the event of foreclosure, as far as asset preservation is concerned.

For more, check out the NAHB's report.

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