Home sizes are increasing as a direct impact of the pandemic

Home sizes are increasing as a direct impact of the pandemic

Home sizes are increasing as a direct impact of the pandemic
The coronavirus forced people indoors making the home more than just a place to live but also functioning as the office, the classroom and the vacation destination. The need to have a functional space for all these activities has prompted homebuilders to construct properties bigger than before.

According to Q2 2021 data from the Census Quarterly Starts and Completions by Purpose and Design and the National Association of Home Builders, the average size of a new single-family home is now $2,502 square feet. This is 5.5 percent larger than the one-year moving average from 2009 to 2015.

While larger homes may suit the needs of established families needing more space, they are also typically more expensive and beyond the needs and budgets of new homebuyers looking for starter homes.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.