New homes sizes shrinking

New homes sizes shrinking

New homes sizes shrinking
Countering the trend seen over the last several years, new data on home construction shows that the size of new homes being built are getting smaller. Average square footage has seen a steady increase post-recession but as construction costs began to climb over the last few years, growth has plateaued. As a result, the number of newly built single-family homes with four bedrooms or more has fallen from 44.8 percent in 2017 to 43.5 in 2018. This latest data comes from an analysis of U.S. Census Bureau facts analyzed by The National Association of Home Builders.

Smaller homes are also a response to millennial home buyers who are looking for more affordable starter homes. In 2018, 45 percent of new homes were built with three bedrooms and 11 percent had just two bedrooms.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.