More first-time, energy-conscious, urban home buyers with smaller households have contributed to a noticeable reduction in home size as shown in 2008-2009 housing Census data. Concurrently, lower-priced home sales outpaced more expensive homes.
Thirty years ago homes averaged 1700 sq. ft. Nonetheless, the 50 ft. drop to 2,422 sq.ft. from 2008-2009 is considered significant as home sizes had been increasing steadily.
"(T)he data do not indicate that buyers are looking for smaller homes because they think small is beautiful," Philadelphia economist Kevin Gillen, vice president of Econsult Corp, said. "Rather, they want homes that are more energy-efficient, with a more urban location and with fewer bedrooms, and that all naturally translates into a smaller home."
"On average, home sales for less than $350,000 have increased 12 percent year-over-year during the months since January 2009, while sales of houses priced from $350,000 to $900,000 have decreased 8 percent, said Michael Feder, president and CEO of Radar Logic of New York."
FULL STORY: As housing market shrinks, so does average size of new homes
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