Homes are getting bigger, by popular demand

Homes are getting bigger, by popular demand

Homes are getting bigger, by popular demand
Builders are constructing homes bigger than they have in years, largely in response to the desires of their consumers. Since the outset of the coronavirus pandemic, Americans have sought more space so they could have room at home to live, work, learn and play. According to a new report from the National Association of Home Builders, the share of single-family homes with four or more bedrooms rose from 42.6 percent in 2019 to 45.2 percent in 2020.

“These developments are linked to changes in the makeup of home buyers from the previous years,” said Litic Murali, writer for the NAHB’s Eye on Housing blog. “In 2020, the detrimental economic effects of the COVID-19 pandemic, a low-interest-rate environment in the U.S., and low housing supply together drove prices up, leaving some prospective first-time home buyers out of the market. Successful buyers were generally looking for more space.”

While homes may be getting bigger, the land they sit on is getting smaller. The median lot size of a new home has decreased 18 percent from 2010 to 2020.

Today, 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.