Home Size Continues to Decline; Buyers Increasingly Opt for Single-Story Homes

by Joel Barkman

The size of new single-family homes completed declined last year, dropping to a nationwide average of 2,438 square feet, according to detailed information about the characteristics of new homes completed in 2009 that was released recently by the Census Bureau.

After increasing continually for nearly three decades, the average size of single-family homes completed in the United States peaked at 2,521 square feet in 2007. It was essentially flat in 2008, and then dropped in 2009, so that new single-family homes were almost 100 square feet smaller in 2009 than in 2007.

"We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980s," said the National Association of Home Builders' (NAHB) Chief Economist. "The decline of the early 1980s turned out to be temporary, but this time the decline is related to phenomena such as an increased share of first-time home buyers and a desire to keep energy costs down."

Smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home may also have something to do with the latest trend. Many of these tendencies are likely to persist and continue affecting the new home market for an extended period.

Resale value is always a critical component of designing and building a new home. However, my clients have been opting for features that work them and their families as opposed to making more decisions based strictly on resale.

Formal living rooms are becoming less used by today's families - as are formal dining rooms. Many of my clients are choosing not to pay for these spaces merely to satisfy a preconceived notion of what their home might sell for in the future.

Perhaps with lending as strict as it is homebuyers are planning to invest more into their homes - more time that is. Hopefully the place we call home is becoming a more permanent fixture in our minds and not just a commodity so easily bought and sold.

I have also noticed that more of my clients are asking for single level homes or Cape Code style homes to keep the main living areas on one floor. For those interested in Universal Design or "Aging in Place", this trend is not merely a fad, but an underlying principal - which in and of itself is becoming more popular with my clients. In keeping with their slightly smaller size it also seems as though new single-family homes have fewer bedrooms than reported in previous years. After increasing for almost 20 years, the proportion of single-family homes with three bedrooms increased from 49 percent to 53 percent between 2005 and 2009. New single-family homes completed last year also had fewer bathrooms than previously. Since 2006 the trend toward two level homes is being reversed, as the share of single-family homes with one-story increased to 47 percent last year (from 43 percent), while the share with two or more stories dropped to 53 percent (from 67 percent). Obviously things have changed in this country during the last several years and in some cases quite drastically. I imagine that one day in the near future the housing market will stabilize and even bounce back.

The big production builders will soon find their way back to area markets and homes will be sold and traded as a commodity - the housing market will be "business as usual."

I do hope and believe that certain lessons learned will take root. Bigger is not always better and sometime less is much, much more. Especially when it comes to energy efficiency and environmental stewardship.

Hopefully thoughtful design and smart planning will still hold a place when choosing a builder and when choosing a home and when choosing a lender. My hope is that our homes and our housing market will mirror who we are as a community and as a country - a reflection of strength, endurance, and responsibility.

It's more than simply buying a house, it's building a home - just "Ask a Builder."

As always e-mail your questions or comments to joel@goldenrulebuilders.com or write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119.

Barkman is past president of the Fauquier Chapter of The Northern Virginia Building Industry Association.

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